The decision comes in the wake of Tesla CEO Elon Musk's overt support for former President Donald Trump, which Rossmann views as incompatible with its own values and those ostensibly represented by Tesla's eco-friendly products.
According to CNBC, Rossmann, headquartered in Germany, issued a statement explaining its decision, stating it was "based on the incompatibility between the statements of Tesla CEO Elon Musk and the values that Tesla represents with its products." Raoul Rossmann, a spokesperson for the company, further clarified the company's stance, saying, "Elon Musk makes no secret of his support for Donald Trump. Trump has repeatedly described climate change as a hoax - this attitude is in stark contrast to Tesla's mission to contribute to environmental protection through the production of electric cars."
Although Rossmann's annual purchase of electric vehicles is relatively modest, around 180 vehicles, and its Tesla fleet only comprises 38 vehicles, as reported by Bloomberg, the company's decision to halt all Tesla EV purchases is indicative of the broader impact of Musk's political affiliations on the automaker's business beyond American borders.
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Musk's political leanings became more explicit last month when he formally endorsed Trump and announced his financial contribution to a pro-Trump group he co-founded, America PAC. The Tesla CEO is also scheduled to interview the former president, as Trump revealed recently.
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Trump's stance on climate change, which he has repeatedly labeled a "hoax," and his commitment to withdraw the U.S. from the Paris climate agreement if elected in November, as he did during his presidency, starkly contrasts with Tesla's mission of environmental conservation.
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Research by Morning Consult indicates that Musk's acquisition of Twitter (now known as X) in late 2022 has improved his standing among U.S. Republicans. However, this has not translated into increased consideration of electric vehicles among this demographic. Pew Research data suggests that Musk's reputation has suffered among left-leaning voters, who are generally more inclined to purchase electric vehicles.
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Rossmann's decision comes on the heels of a recent survey that reported a decline in Tesla's brand reputation, partly attributed to Musk's "antics" and "political rants." Despite a 2% increase in Tesla's revenue during the second quarter, automotive revenue fell 7% to $19.9 billion from $21.27 billion in the same quarter the previous year.
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Tesla, which opened a factory in Brandenburg, Germany, in 2022 and employs thousands in the country, has faced opposition from environmental activists in Germany. The activists have criticized the company's plans to deforest a part of Brandenburg and use water for manufacturing. Musk responded to the protests on X in March, calling the activists "either the dumbest eco-terrorists on Earth or they're puppets of those who don't have good environmental goals."
As of the end of 2023, Rossmann operates over 4,700 stores and employs more than 60,000 people, with approximately half based in Germany.
