Elon Musk interviews Donald Trump, is Tesla picking up the tab?
At 8 a.m. Beijing time on Tuesday, Musk will spontaneously interview Trump, but Musk's political inclination seems to have begun to directly affect Tesla's business development in Europe
Elon Musk has publicly expressed support for Donald Trump on multiple occasions. This Tuesday, Musk will interview Trump live.
On the evening of August 12th, Eastern Time (8 a.m. on Tuesday Beijing Time), Musk will have a conversation with former U.S. President and Republican presidential candidate Donald Trump, which will be broadcast live.
It is worth mentioning that this interview is impromptu, without a script, and there are no restrictions on the content.
Previously, Trump posted several posts on the social media platform X, including some campaign information and a promotional message that he will be interviewed by Musk. This indicates that Trump, who was banned from returning to X on January 6, 2021, due to the riot at the U.S. Capitol, will officially return.
However, this political inclination seems to have begun to directly impact Tesla's business development in Europe.
According to media reports, the European pharmacy giant Rossmann decided to immediately suspend the purchase of Tesla cars due to Musk's support for Trump. Rossmann explicitly stated in its announcement that Musk's support for Trump contradicts the company's mission to protect the environment by producing electric vehicles.
Is Tesla Paying the Price?
Tesla's market share in the European Union is already at risk. Despite the increasing popularity of electric vehicles in the region, Tesla's registration volume dropped to its lowest point in 15 months earlier this year. In order to attract new European fleet buyers, Tesla continues to lower prices, but experts believe this may not be enough to reverse the situation, and may even backfire.
Rossmann's decision may not have a significant impact on Tesla's sales in the EU, as only 34 out of 800 vehicles in the German chain of pharmacies are Teslas. However, the decision may send a strong signal, as software giant SAP also announced that it will abandon Tesla as a company vehicle due to Tesla's price volatility and other uncertainties.
Last month, Musk stated that he plans to donate $45 million per month to a new super PAC supporting Trump's presidential campaign. Although Musk initially confirmed this report, he later denied it. In addition, Musk has even turned his social media network X into a camp supporting "Make America Great Again" (MAGA).
On the other hand, Tesla's sales continue to decline. The financial results for the second quarter announced last month showed a staggering 45% year-on-year decrease in net profit, marking the second consecutive quarter of decline. In this unstable situation, Tesla's commercial customers have many alternative options, especially in markets outside the United States, where competition is intensifyingIs Musk's endorsement of Trump really the best choice? Considering his increasingly polarizing and extreme views, Tesla has quickly become an extension of fringe political movements, which has made European companies feel repelled