European pharmacy chain, Rossmann, has decided to stop buying electric vehicles (EVs) from Tesla Inc. TSLA due to CEO Elon Musk’s support for Donald Trump.
What Happened: The Germany-based company has made this decision effective immediately. The company’s spokesperson, Raoul Rossmann, stated that the contradiction between Musk’s political support and the environmental values represented by Tesla’s products led to this decision, CNBC reported on Wednesday.
"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,” Rossmann said.
Although Rossmann’s annual EV purchases are around 180, with only 38 being Teslas, this decision highlights the potential global repercussions of Musk’s political choices on Tesla’s business.
Musk publicly endorsed Trump last month and announced his contribution to a pro-Trump group, America PAC, which he helped establish. He is also scheduled to interview the former president.
Why It Matters: Musk’s endorsement of Trump is not a blanket approval of all his views, as he clarified in a conversation with Lex Fridman. Trump has also expressed his support for electric cars, alleging that the Democratic Party wants to replace gas cars with EVs.
The two are scheduled for an interview on Monday, Aug. 12, less than three months ahead of the 2024 presidential election.
Price Action: Tesla was trading 2.77% lower at $195.08 in the after-hours market after closing at $200.64 on Tuesday, according to Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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