Elon Musk's support for Donald Trump hurts Tesla's struggling electric vehicle business in Europe

Elon Musk has never shied away from controversy, whether it's the threat AI poses to society, the reinstatement of previously banned X (formerly Twitter) accounts, or, more recently, his support for Republican presidential candidate Donald Trump.

While most of Musk's controversial ideas eventually fade away, his support for Trump has a tangible impact on his electric vehicle company, Tesla, in Europe.

On Tuesday, Rossmann, one of Europe's largest pharmacy chains, announced that it was suspending purchases of Tesla vehicles with immediate effect.

His reason? Musk's open support for Trump.

Elon Musk has made no secret of his support for Donald Trump, who has repeatedly described climate change as a hoax, an attitude that stands in stark contrast to Tesla's mission to help protect the environment through the production of electric cars, Tesla management spokesman Raoul Rossmann said in a statement.

Igor GolovniovSOPA Images/LightRocket/Getty Images

Thirty-four of Rossmann's 800 vehicles are Teslas, a company spokesperson told Fortune. The company plans to continue using those vehicles for sustainability and resource conservation reasons.

Rossmann is the first major company to cite Musk’s political stance as a reason to suspend future Tesla purchases. Other European companies have dropped orders from Tesla for other reasons. For example, software giant SAP said it would stop offering Teslas as company cars to its employees because Musk’s repeated price cuts add uncertainty, unlike other automakers.

Closer to home, Florida-based car rental company Hertz is reeling from its big (bad) bet on Tesla, which led it to dump tens of thousands of the company’s vehicles. European leasing companies have faced a similar situation, forcing Tesla to offer unofficial discounts to appease them.

The European market for electric vehicles is much larger than the US, but demand has plummeted due to stiff competition and reduced subsidies. That has hurt Tesla significantly, as the region's largest countries reported sharp declines in sales in the first seven months of the year.

Elon Musk's Dilemma

Elon Musk’s position in the broader debate around clean technology is still unclear. Musk’s companies have pioneered the commercialization of electric vehicles, seen as a new alternative to fossil-fueled vehicles and a key step toward a green transition. For this reason, the world’s richest man is considered a hero, depending on who you ask.

But the self-proclaimed environmentalist billionaire also said climate change fears were overblown in the short term in December. It's worth remembering that Musk is also a frequent user of private jets, making him a major polluter in his own right.

As the European pharmaceutical chain pointed out, Musk's support for Trump may seem like a stark contrast to Tesla's focus on electric cars. The SpaceX CEO has spoken about the devastating impact a Trump presidency could have on the electric vehicle market, including Tesla.

But Musk's support isn't limited to his support for Trump. He created a political action committee (PAC) that supports the former president, though the amount of his donations is still disputed. The PAC is currently under investigation for data fraud.

Trump's statements in the past have been at odds with Tesla's business. The Republican candidate once said electric vehicles would destroy the country and cost too much. But since Musk pledged his support, Trump has said he has no choice but to be on the electric vehicle team.

With the US election just months away, the story of how Musk's political stance affects his businesses inside and outside America may continue to unfold.

Tesla representatives did not respond to Fortunes' request for comment.

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