In a significant blow to Tesla’s reputation and sales in Europe, the Danish construction company Tscherning has announced that it is returning its entire corporate fleet of Tesla vehicles.
This decision comes on the heels of growing concerns around CEO Elon Musk’s political affiliations, particularly his support for far-right politicians and parties that have left many feeling uneasy about the brand.
Tscherning’s announcement underscores a broader trend among corporate clients and individual owners who are distancing themselves from Tesla as Musk’s political commentary increasingly overshadows the company’s electric vehicle technology.
Musk’s Politics Drive Companies Away from Tesla’s EVs
“At Tscherning, we not only decide how we drive – but also who we drive with. That’s why we’ve chosen to return our Tesla company cars,” the company stated, highlighting that their decision was not a reflection of Tesla’s vehicles but rather a repudiation of Musk’s political commitments.
The firm will now seek “European alternatives” to meet its corporate vehicle needs, a move that echoes similar decisions made by other companies, such as Rossmann, one of Europe’s largest pharmacy chains, which also sold off its Tesla fleet for similar reasons.
Recent reports indicate a steep decline in Tesla’s sales, which had already been sliding throughout 2024, but the timeline has accelerated dramatically into 2025. Tesla’s corporate fleet sales are especially vulnerable, as many current owners are now looking to sell their vehicles, aiming to dissociate themselves from the brand altogether.
Market analysts are raising alarm bells about Tesla’s sustainability in the European market, suggesting that layoffs and store closures could be on the horizon if this trend continues.
Despite the introduction of the new Model Y, Tesla’s sales tracking for Q2 shows nearly the same dismal performance as Q1, with a decline of 40% year-over-year. With corporate fleets being returned and used Tesla prices falling, consumers looking to purchase a Tesla may find it advantageous to buy second-hand vehicles at these cratering prices.