The Pushback: Boycotts and Burned Cars

The “Musk effect” is being felt across Germany, though not in the way the tech billionaire may have envisioned.Reports from taxi drivers across the country reveal increasing reluctance among passengers to ride in Teslas. This resistance coincides with surveys indicating a sharp decline in Tesla sales and brand affinity after Musk endorsed Donald Trump and faced accusations of making a Nazi salute at a presidential inauguration event.

Musk dismissed the criticism via his social media platform,X,claiming that “The legacy media is pure propaganda” and “thay need better dirty tricks,” adding,“the ‘everyone is Hitler’ attack is sooo tired.” He also threatened to sue Minnesota Gov. Tim Walz for accusing him of performing Nazi salutes. His actions mirror similar controversies in the U.S., where his political commentary has sparked debates about free speech and corporate responsibility, reminiscent of the Colin Kaepernick Nike ad controversy, which also saw a segment of the population boycotting the brand.

For some German consumers, the last straw was Musk’s support for Germany’s far-right Choice for Germany (AfD) party before the previous month’s federal election, branding them as “the only party that can save Germany.” While his endorsement didn’t noticeably boost the AfD in the polls, it seems to have backfired on Tesla, which operates its only European factory on the outskirts of Berlin.

In the capital, many Teslas now sport bumper stickers that read, “I bought this before…” in a clear attempt to distance themselves from the brand’s association with Musk’s political views. Authorities have even reported incidents of vandalism, including four Teslas being set ablaze in a middle-class Berlin suburb in a single night. This mirrors instances in the U.S.where political polarization has led to targeted attacks against businesses perceived as aligned with opposing ideologies.

Data Dive: The Numbers Tell a Story

Market research paints a grim picture of Tesla’s declining fortunes in Germany. A representative survey showed that in August of the previous year, 31% of Germans considered a Tesla for their next car. However, following Mr. Trump’s inauguration and the ensuing “Musk salute” controversy, that number plummeted to 16%. A separate, non-representative online poll by T-Online news portal revealed that a staggering 94% of respondents would no longer consider purchasing a Tesla, while only 3% remained open to the idea.

German car registration figures further solidify this trend. Tesla registrations plunged by 76% in February, reaching just 1,429 vehicles. These monthly figures appear to be part of a broader pattern that has emerged since musk’s increased engagement in politics. Tesla sales in Germany dropped by 41% last year compared to 2023, despite an overall increase in electric vehicle sales by 27% during the same period. This contrast underscores the unique challenges Tesla faces in the German market due to its CEO’s controversial political stances.

Manipulation Allegations and Taxi Troubles

According to reports, even manipulated online polls couldn’t mask the damage spreading beyond Tesla sales. after a report of the T-Mobile poll was reported, a German outlet identified a surge in voting activity originating from two IP addresses in the U.S. They concluded that at least 253,000 “voters” in the survey were, in fact, two tesla/Musk controlled bots attempting to skew the results in a more favorable light for Musk to share on X. This echoes concerns about the spread of misinformation and the use of bots to influence public opinion, a prevalent issue in U.S. politics as well.

German taxi drivers who invested in Teslas are now experiencing buyer’s remorse as customers actively avoid their vehicles due to the company owner’s controversial persona.”I bought my Tesla because I wanted a cleaner car and everything was super at the start,” Manfred Bley, a Hamburg Tesla-taxi driver, told the tabloid bild. “But the situation has changed as Elon musk is playing around with Donald Trump.”

While taxi associations contacted by various media outlets reported anecdotal evidence of customer reluctance towards the Tesla brand, a definitive statistical analysis is still lacking. Nonetheless, the perceived problem has garnered enough attention that Germany’s federal taxi association is “taking the Tesla image problem seriously.”

Thousands of taxi drivers who switched from conventional Mercedes models to the U.S.-owned electric car now fear that a widespread boycott could jeopardize their livelihoods. Taxi association head Michael Oppermann appealed to customers to show consideration for its members, stating to Bild: “Musk didn’t ask the drivers which politics he should follow, but now it’s the drivers being squeezed.”

Alternative Perspectives and Future Implications

Some car analysts suggest that part of the sales slump is due to the transition from the original Model Y to a newer version. This has prompted some customers to defer their purchases, awaiting the arrival of the updated model. Though, this clarification doesn’t fully account for the critically important drop in brand consideration and the reported customer boycotts. In the U.S., analysts often cite factors like production bottlenecks, supply chain disruptions, and increased competition from other electric vehicle manufacturers to explain fluctuations in Tesla sales. However, the German situation presents a unique case where political factors appear to be playing a dominant role.

The events unfolding in Germany serve as a cautionary tale for companies operating in an increasingly polarized world. It underscores the potential risks associated with CEOs taking strong political stances, particularly when those views clash with the values and beliefs of their customer base. As consumers become more socially conscious, brand reputation is increasingly tied to ethical and political considerations, making it crucial for businesses to navigate these complexities with care and awareness.