Denmark’s Tscherning, a prominent construction company, is returning its entire Tesla fleet in reaction to the mounting hazards Tesla faces regarding its reputation across Europe. Tscherning ended its partnership with Tesla over Elon Musk’s growing political stance and his associations with Trump and European far-right groups.
The once unparalleled example of Electric Giant is now experiencing a trend of companies distancing themselves from the brand, not because of quality issues, but because of their CEO’s political attributes.
Corporate Values Under Pressure
The company confirmed its stance in a statement by returning all its Tesla vehicles. We have since realized that the Tesla brand no longer shares our values.
“At Tscherning, we not only decide how we drive – but also who we drive with,” the company said. “Not because Tesla has become a bad car, but in light of Elon Musk’s political commitment and the opinions he has publicly expressed (and which are increasingly hard to overlook), we as a company have chosen to say ‘thank you for the ride.’”
Tscherning has now drawn the line between the cars they drive and the companies behind them. Our departure from Tesla has nothing to do with the quality of the car, yet we feel that keeping this partnership would conflict with our values moving forward.
The team added that ending its partnership with Tesla was an ethical choice and not based on the quality or reliability of its cars.
“We don’t want to be associated with the values and political direction that currently accompany the Tesla brand.”
A Widening Trend in Europe
Others in Europe have followed a similar approach. Rossmann disbanded its entire Tesla fleet the year prior for similar concerns. Tesla has relied heavily on corporate fleets in Europe to drive its sales, given that many companies increasingly prefer electric vehicles. Tesla is paying a price for the negative political associations with its founder.
Sales of Tesla vehicles in Europe started to decline in 2024 and have continued to drop at an even faster pace this year. Demand for Tesla cars has softened as members of the public and the business world grow wary of the brand over Musk’s outspoken political views.
The Tesla brand is rapidly losing its hold in the European market. People who own Teslas are now motivated to get rid of them and are discouraging others from buying the brand. Many businesses and individuals find it difficult to reconcile owning a Tesla and associating with Musk’s politics due to their preference for political and social neutrality.
Situation in Other Parts of Europe
A survey has shown that 94% of German consumers have no interest in purchasing a Tesla, indicating a significant drop in the company’s popularity in Europe. Most of the negativity stems from Elon Musk’s political views and actions rather than problems with the cars themselves, as their main reason.
Many Germans are concerned with Tesla’s connections to far-right politics and its CEO’s ongoing support for polarizing leaders. Consequently, many European consumers are now turning to EV brands that better reflect their own social and political beliefs.
However, Tesla has found greater success in the United Kingdom. Sales of Tesla vehicles in the UK grew by more than 20% this year despite the debates around the company’s CEO. The increase in demand in the UK seems to indicate that people in Britain are more inclined to consider Tesla purely as a product rather than being influenced by the opinions and behavior of Elon Musk. British and German consumers demonstrate very different preferences despite the uniformity of the European EV market.