Tesla is reportedly facing reputational damage in Europe, attributed to CEO Elon Musk’s outspoken political views. The fallout appears to be impacting Tesla’s market performance on the continent, exacerbating existing uncertainties about the company’s stability. Regardless of these difficulties, Tesla remains resolute in its efforts to improve its standing in the European market.
In a recent development, major European pharmacy chain, Rossmann, paused their Tesla orders following a series of disagreements surrounding Musk’s political opinions. Although they have been a profitable customer for Tesla, Rossmann stated their decision to suspend any future acquisitions of Tesla vehicles is due to the need for businesses to align with their own values, reflecting increasing tensions between corporations and their suppliers over political and social issues.
Despite halting Tesla purchases, Rossmann will continue to operate their existing fleet of 34 Teslas, driven by their commitment to environmental sustainability. The company recognizes the role of electric vehicles in reducing carbon emissions and is hence, dedicated to the ongoing use of their current Tesla fleet.
Rossmann’s decision marks the first time a notable European company has connected their choice to discontinue transactions with Tesla to Musk’s political views.
Musk’s politics affecting Tesla’s European status
This could potentially set a new precedent in the European business sector with companies reconsidering their partnerships based on leadership’s personal beliefs, indicating the possibility of a shift in corporate dynamics and values.
Furthermore, tech titan SAP and car rental firm Hertz have also expressed plans to replace Tesla cars from their fleets due to Tesla’s fluctuating pricing strategies. Other industry heavyweights like Enterprise and Uber are also reviewing their plans of including Tesla cars in their fleets citing similar concerns. These developments could lead to an oversupply of Tesla cars and a subsequent decrease in demand, fueling apprehensions among Tesla investors.
Musk’s role in the discourse about green technology appears uncertain, with his business endeavors in the electric vehicle sector contrasting with his views on climate change and significant personal carbon footprint. Initiatives like Tesla and SolarCity have substantially aided the shift towards sustainable energy and transportation. However, Musk’s frequent private jet usage and carbon-intensive business operations, such as SpaceX, challenge his image as a climate activist.