Tesla Faces Boycott Over Musk’s Political Remarks

Jan. 28, 2025, 5:45 am ET

Instant Insight

30-Second Take

  • A growing boycott of Tesla is underway in Germany and Poland due to Elon Musk’s political remarks.
  • Musk’s support for the far-right Alternative for Germany party and comments on WWII have sparked widespread criticism.
  • Several major companies and government officials are calling for a boycott of Tesla vehicles.

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Quick Brief

2-Minute Digest

Essential Context

Elon Musk’s recent involvement in German politics, particularly his support for the far-right Alternative for Germany (AfD) party, has led to a significant backlash. His comments downplaying the importance of acknowledging Germany’s past, including its WWII history, have further exacerbated the situation.

Core Players

  • Elon Musk – Tesla CEO and SpaceX founder
  • Alternative for Germany (AfD) – German far-right political party
  • Rossmann – German pharmacy chain that has replaced Tesla vehicles in its fleet
  • LichtBlick – German energy company pulling out of Tesla contracts
  • Slawomir Nitras – Polish Sports and Tourism Minister calling for a Tesla boycott in Poland

Key Numbers

  • 41% – Drop in Tesla sales in Germany in 2024 compared to 2023
  • 26,000 – Units by which Tesla sales decreased in Germany in 2024
  • 4,460 – Number of Tesla units sold in Poland in 2024
  • $9,958 – Maximum electric vehicle subsidy in Poland
  • 26% – Decline in Tesla’s brand value from 2024 to 2025

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The Catalyst

Elon Musk’s active engagement in German politics, including his virtual appearance at an AfD rally, has been the primary catalyst for the boycott. His comments suggesting that Germans should not be held accountable for the sins of their ancestors have been particularly inflammatory.

“Children should not be guilty of the sins of their parents, let alone their great-grandparents,” Musk said, which many have interpreted as downplaying the importance of acknowledging Germany’s past.

Inside Forces

Tesla’s sales have already been affected, with a significant drop in Germany and growing dissatisfaction among some customers in other countries. Companies like Rossmann and LichtBlick have publicly announced their decision to stop using Tesla vehicles due to Musk’s statements.

LichtBlick’s Head of Facilities and Real Estate, Kevin Lütje, stated, “Elon Musk’s support of Donald Trump and his recommendation to vote for a right-wing populist and right-wing extremist party that is in no way compatible with LichtBlick’s values prompted us to take this step.”

Power Dynamics

Musk’s influence extends beyond his companies, with his social media presence and public statements carrying significant weight. However, this influence is now being met with resistance from various stakeholders, including government officials and corporate entities.

Polish Sports and Tourism Minister Slawomir Nitras has called for a boycott of Tesla in Poland, saying, “Maybe Mr. Musk with his billions doesn’t feel threatened. But every normal person living in the center of Europe, who remembers what happened eighty years ago, cannot look on indifferently.”

Outside Impact

The boycott is not limited to Germany and Poland; it has broader implications for Tesla’s global brand. The company’s brand value has dropped by 26% from 2024 to 2025, according to Brand Finance. This decline reflects growing public and corporate dissatisfaction with Musk’s actions.

Tesla’s sales in other regions, such as the Netherlands, are also being affected, with a survey showing that about one-third of Tesla owners are considering selling their cars due to Musk’s political stance.

Future Forces

Looking ahead, the impact of these boycotts could be significant for Tesla. If the trend continues, it might force Tesla’s board to reevaluate their support for Musk. Additionally, regulatory scrutiny could increase as governments and consumers demand more accountability from corporate leaders.

Potential areas for future regulation include stricter guidelines on corporate leaders’ public statements, especially those that intersect with politics and social issues.

Data Points

  • Jan. 16, 2025: Reports of Tesla boycott gaining momentum in Germany emerge.
  • Jan. 27, 2025: Polish government official calls for a Tesla boycott in Poland.
  • 2024: Tesla sales in Germany drop by 41% compared to 2023.
  • 2025: Tesla’s global brand rankings drop from 18th to 36th place.
  • Feb. 23, 2025: German elections where AfD is expected to participate.

The ongoing boycott of Tesla highlights the risks of corporate leaders engaging in contentious politics. As public sentiment continues to shift, companies may need to reassess their strategies to maintain consumer trust and brand integrity.