Elon Musk’s endorsement of former President Donald Trump has not only sparked political controversy but also led to a noticeable decline in Tesla’s customer base.
As Musk’s outspoken support for Trump resonates with some, it has alienated others, who find his political views off-putting. For instance, a German drugstore giant suspended the purchasing of the Tesla with ‘immediate effect’ citing Trump as the reason behind it.
German drugstore giant suspends the ‘purchase of Tesla’
Donald Trump, seeking a second term in the White House, survived an assassination attempt on July 13. Shortly afterwards, Elon Musk, who had already been leaning toward the Republican agenda, publicly endorsed Trump, reinforcing his support against the Democratic Party.
Even though a lot of what Musk says gets old fast, his support for Trump is really messing with Tesla’s image, especially in Europe. Rossmann, a major European drugstore chain, announced it would immediately halt Tesla vehicle purchases. The reason is none other than Donald Trump who has frequently dismissed climate change, which contradicts EV’s environmental goals.
“Elon Musk makes no secret of his support for Donald Trump. Trump has repeatedly described climate change as a hoax,” the statement by the spokesperson of the management said. “This attitude is in stark contrast to Tesla’s mission to contribute to environmental protection through the production of electric cars,” the statement further reads as per Fortune. The outlet further noted that out of 800 vehicles that the Rossmann empire owns 34 of them are Musk-owned Tesla.
Is Elon Musk’s support for Trump hurting Tesla?
A decade prior, Vibhor Chhabra, a product executive in his forties from the Bay Area and a former owner of Tesla, perceived the brand as emblematic of steadfast dedication to the fight against climate change, the promotion of electric transportation, or the endorsement of CEO Elon Musk’s vision for sustainability. “You could make a statement while having a great car,” Chhabra said stressing his past association with the brand.
He is now in the market again, looking for a new vehicle and considering other options. He noted that Tesla’s brand now “comes with a lot of baggage” and he no longer wants to be linked to Musk.
“I don’t consider Trump an environmental candidate, and I don’t understand how somebody who started a company with an environmental mission could support that candidate,” said Stan Clark a retired California-based architect.
The big sales drop
Tesla’s position as a market leader is beginning to show signs of decline. The company’s once-dominant market share for electric vehicles in the United States fell below 50 per cent during the second quarter of the calendar year, despite sales of battery-powered cars reaching a record high, according to Business Insider.
“There are a lot of credible studies out there that really do suggest that Elon Musk’s increasingly right-wing politics do alienate a significant number of shoppers,” said Ed Kim, president of AutoPacific, according to Daily Express US.