Rossmann (or Dirk Rossmann GmbH), one of the largest drug chains in Europe, has decided to cut ties with Tesla, the EV company owned by Elon Musk, due to his endorsement of Republican Presidential candidate Donald Trump.
The former president has repeatedly called climate change a “hoax.” Tesla’s corporate clients are beginning to wonder if the electric vehicle brand’s owner should support a president who has no plans for the global problem.
Rossman Announced That It Will Not Buy Tesla Vehicles
The European drug company made an official statement at the beginning of August, saying it will no longer buy Tesla’s electric vehicles for its fleet. According to Rossmann, this decision was effective immediately, and the reason is not far-fetched.
The drug giant, primarily based in Germany, has publicly stated that it will no longer buy any more cars from Tesla because the company CEO Elon Musk is endorsing Republican Presidential candidate Donald Trump.
The Corporate Client’s Statement
Rail Rossmann gave the company’s official statement, saying that the decision was made because of the “incompatibility between the statements of Tesla CEO Elon Musk and the values that Tesla represents with its products.” Since Trump has repeatedly called climate change a “hoax,” the company believes it is in “stark contrast to Tesla’s mission to contribute to environmental protection through the production of electric cars.”
Therefore, Elon Musk’s support of such a candidate made the pharmaceutical giant withdraw its patronage.
Elon Musk’s Political Views Are Now Affecting Tesla
With Rossmann stopping its purchase, many have begun to wonder if Elon Musk’s political views will affect Tesla more in the future. The pharmaceutical company usually purchases about 180 electric vehicles annually, and only 38 of them are Tesla’s.
Rossmann, the German buyer and corporate client, has decided to cancel all Tesla purchases, showing that Musk’s political views and endorsements are starting to negatively affect Tesla outside the U.S.
A Decline of Tesla’s Brand
The corporate client’s decision comes not long after a recent survey on Tesla found that the brand is beginning to decline partly due to its CEO’s “political rants” and “antics.”
Tesla’s revenue increased by 2% in the second quarter of the year. Still, its automotive revenue dropped by 7% to $19.9 billion, compared to the $22.27 billion recorded in the second quarter of last year. This further shows a decline for Tesla.
Elon Musk’s Support for Donald Trump
Elon Musk has always supported Trump, but he only formally endorsed the former president in July. He also said that he would contribute funds to America PAC, a pro-Trump group that was created with his help.
The billionaire businessman also said that he would interview the Republican candidate soon. Several people have now asked if it was fitting for an electric vehicle’s CEO to endorse a presidential candidate who saw climate change as a hoax.
Republicans Are Viewing Musk More Positively
Morning Consult’s ongoing research also showed that many Republicans have started viewing Elon Musk in a positive light. This started after he bought Twitter (now known as X) in 2022. With his support of Trump, they are likely to view him more favorably.
However, according to Pew Research, Republicans are still not buying more electric vehicles, as Democrats make up more of their purchasing clients because they are more likely to buy EVs.
Environmental Activists Are Against Tesla
In addition, Tesla has faced protests by environmental activists in Germany who had a bone to pick with the company’s plans. Tesla planned to cut down a notable part of a forest and use its water for manufacturing in Brandenburg.
Seeing this as an environmental threat, activists protested Musk’s company physically. However, Musk was unimpressed and lashed out at the protesters in a statement on X, calling them “puppets” and the “dumbest eco-terrorists.”
Is Elon Musk Driving Away His Target Audience?
Many wonder if Elon Musk is driving away his target audience with his political views and endorsement. One customer expressed disappointment, saying that he really loves his Tesla and how safe it is for the environment.
However, he now believes that buying a Tesla shows that “you’re clearly aligning with someone (Trump) with some pretty horrific views.” The customer also noted that the CEO has made the Tesla brand toxic to many people and its customers.
Who Are the Major Customers of Tesla?
Tesla’s major demographic customers are men. According to a survey, the electric vehicle company has 74% male buyers. The other 26% are female buyers. These buyers mostly consist of individuals who appreciate technological advancements and smart technology and those who believe in protecting the environment by reducing gas emissions from gas-powered vehicles.
A good percentage of its buyers also value stylish, modern, unique, high-performance vehicles.
ALSO READ: Elon Musk Suffers Biggest Loss for a Billionaire in 2024, for Now
How Does Tesla Deal with Customers?
One highly impressive attribute of the company is its fame for listening to its customers. Unlike other big corporations, Tesla listens to its customers and incorporates their feedback into its systems.
When customers complain about something that affects their driving experience, Tesla rectifies the situation as soon as possible. Therefore, the EV maker’s customers are usually quite loyal to the company.
What Are Tesla’s Corporate Ethics?
Tesla prides itself on being a great brand that treats both its clients and workers with the utmost respect and dignity. It ensures that all its supply chains are safe and humane, prioritizing the safety and care of its workers.
Tesla also listens to its customers, ensuring they have the best possible experience when they purchase a Tesla. All complaints and concerns are welcome at Tesla, as the brand is also ready to receive feedback from its users.
What Is the Corporate Strategy of Tesla?
Tesla Inc. uses only one business model, which is called the Manufacturer-Direct model. This means the company sells its products directly to its customers straight from its manufacturers.
Elon Musk’s Tesla also uses four different strategies simultaneously: Government Intervention (Lobbying and Incentives and subsidies), Customer Productivity (Network Effects), Scale (Vertical Integration), and Differentiation (Premium Branding).
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