Nandini Roy Choudhury, writer
Brief News
- Rossmann, a European pharmaceutical company, has decided to stop purchasing Tesla electric vehicles for its fleet due to CEO Elon Musk’s support for President Trump.
- The decision was based on the perceived incompatibility between Tesla’s values and statements made by Musk, particularly regarding climate change.
- Rossmann’s decision indicates that Musk’s political decisions are starting to have an impact on Tesla’s business beyond the United States.
Detailed news
Rossmann, a European pharmaceutical behemoth, stated on Tuesday that it will cease purchasing Tesla’s electric vehicles for its fleet, effective immediately. The decision was made in response to CEO Elon Musk’s expressed support for President Trump.
Rossmann, which is headquartered in Germany, stated in a statement that its decision was “based on the incompatibility between the values that Tesla represents with its products and the statements of Tesla CEO Elon Musk.”.
In a statement, Raoul Rossmann, a spokesperson for the corporation, stated that Elon Musk is explicit about his endorsement of Donald Trump. The attitude of Trump, who has repeatedly referred to climate change as a fraud, is in stark contrast to Tesla’s mission to contribute to environmental protection through the production of electric vehicles.
Rossmann purchases approximately 180 electric vehicles annually, and Bloomberg reports that the company had 38 Teslas in its fleet. However, the company’s decision to discontinue all Tesla EV purchases indicates that Musk’s political decisions have begun to affect the automaker in markets beyond the United States.
Musk formally endorsed Trump last month and announced that he was contributing funds to America PAC, a pro-Trump organization that he assisted in establishing. Trump disclosed on Tuesday that Musk is scheduled to conduct an interview with the former president.
In June, during a debate with President Joe Biden, Trump avoided inquiries regarding his potential actions to address climate change. Additionally, Trump has referred to climate change as a “hoax.” In the event that he is elected in November, he has also promised to withdraw the United States from the Paris climate agreement, as he did during his presidency.
Morning Consult’s ongoing research indicates that Republicans in the United States began to perceive Musk more favorably subsequent to his leveraged acquisition of Twitter (now known as X) in late 2022. Nevertheless, this has not resulted in a rise in the “purchasing consideration” of electric vehicles among Republicans in this region. Pew Research has reported that Musk’s reputation among left-leaning voters has deteriorated, despite the fact that they are significantly more likely to purchase an electric vehicle.
Rossman’s decision is in response to a recent survey that identified a decline in Tesla’s brand, which was partially attributed to Musk’s “antics” and “political rants.” In the second quarter, Tesla’s revenue increased by 2%; however, automotive revenue decreased by 7% to $19.9 billion from $21.27 billion in the same quarter a year ago.
In 2022, Tesla established a manufacturing facility in Brandenburg, Germany, which is situated outside of Berlin. The company currently employs thousands of individuals in the nation. Rossmann, a drugstore chain, reported that it had over 4,700 stores and over 60,000 employees at the end of 2023. Approximately half of these employees were located in Germany.
Environmental activists in Germany have protested Tesla’s intentions to use water for manufacturing in Brandenburg and to cut down a portion of a forest. In March, Musk made a direct attack on the protestors in question, stating on X that they are “either the dumbest eco-terrorists on Earth or they’re puppets of those who don’t have good environmental goals.”
On Tuesday morning, Tesla, Musk, and representatives for Rossmann did not respond to inquiries for additional information.
Source : CNBC News
