The political issue surrounding Elon Musk’s sponsorship of Donald Trump has resulted in a decrease in Tesla’s customer base.
In addition to creating political controversy, Elon Musk’s support of former President Donald Trump has resulted in a discernible drop in Tesla’s consumer base. While some people find Musk’s vocal support for Trump endearing, others find his political beliefs offensive. For example, a large German pharmacy chain halted Tesla sales with “immediate effect,” blaming Trump for the move.
German drugstore giant suspends the ‘purchase of Tesla’
On July 13, there was an attempt on the life of Donald Trump, who is running for reelection to the presidency. Not too long later, Elon Musk—who had already begun to lean Republican—publicly embraced Trump, solidifying his backing in opposition to the Democratic Party.
Despite the fact that a lot of what Musk says is quickly dated, his backing of Trump is seriously harming Tesla’s reputation, particularly in Europe. Major European pharmacy chain Rossmann declared it will stop selling Tesla vehicles right away. The culprit is none other than Donald Trump, whose repeated denials of climate change run counter to EV’s environmental objectives.
Elon Musk is open about his backing of Donald Trump. Trump has frequently called climate change a hoax, according to the management spokesperson’s statement. According to Fortune, the statement goes on to say, “This attitude is in stark contrast to Tesla’s mission to contribute to environmental protection through the production of electric cars.” The publication added that 34 of the 800 cars owned by the Rossmann family are Teslas, which are owned by Musk.
Is Elon Musk’s support for Trump hurting Tesla?
Ten years earlier, Vibhor Chhabra, a Bay Area-based product executive in his forties and a former Tesla owner, saw the company as a symbol of unwavering commitment to the battle against climate change, the advancement of electric vehicles, or the support of CEO Elon Musk’s sustainability vision. “You could have a great car and make a statement,” Chhabra stated, highlighting his previous affiliation with the company.
He is currently shopping around once more for a new car and exploring other possibilities. He stated that he no longer wants to be associated with Musk and that Tesla’s brand now “comes with a lot of baggage”.
Stan Clark, a retired architect from California, stated, “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.”
The big sales drop
There are indications that Tesla’s dominance in the market is starting to wane. Despite record-breaking sales of battery-powered automobiles, the company’s once-dominant market share for electric vehicles in the US dropped below 50% in the second quarter of the year, according to Business Insider.
Ed Kim, president of AutoPacific, told Daily Express US that “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.”
