A Danish construction company, Tscherning, has decided to return its entire fleet of Tesla vehicles, citing Elon Musk’s push into politics as the primary reason. This move reflects a growing trend where some individuals and companies are choosing to distance themselves from the Tesla brand due to Musk’s public statements and political leanings.
The Decision to Return the Fleet
Tscherning had previously electrified its corporate fleet with Tesla vehicles but has now opted to hand over the keys. The company stated that it did not want to be associated with the values and political direction that currently accompany the Tesla brand. Instead, Tscherning plans to purchase “European alternatives” to replace the returned Tesla vehicles.
Impact on Tesla’s Brand and Sales
This decision by Tscherning is not an isolated incident. Tesla has been experiencing lower sales of its vehicles, particularly in Europe, where the company has seen significant declines. The sales drop could be attributed to various factors, including the Model Y changeover, factory downtime, reduced demand for electric vehicles, and consumers’ growing reluctance to be associated with the Tesla brand.
Corporate Sales and Brand Damage
The damage to Tesla’s brand may extend to corporate sales, as companies like Tscherning and European pharmacy chain Rossman have sold their corporate fleets of Tesla vehicles, citing Musk’s involvement in politics as the reason. This trend could potentially harm Tesla’s sales and revenue, especially in regions where the company has traditionally performed well.
Sales Decline in Denmark
In Denmark, Tesla’s sales have plummeted, with declines of 48.1% in January, 53.1% in February, and 65.6% in March compared to the same periods last year. This significant drop in sales may be a harbinger of more challenges to come for Tesla in the European market.
Tesla’s Stock Performance
Despite the challenges facing the company, Tesla’s stock was up 2% to $349.98 on a recent trading day. However, the stock is down 7.7% year-to-date in 2025, although it has gained around 100% over the last year.
Conclusion
The decision by Tscherning to return its Tesla fleet highlights the potential risks associated with a company’s brand being closely tied to the public image and actions of its CEO. As consumers and companies become increasingly sensitive to the values and politics associated with the brands they support, companies like Tesla may need to navigate these challenges to maintain their market share and reputation.