Danish Construction Giant Tscherning Drops Tesla Fleet Over Elon Musk’s Politics

Introduction

In a striking move that echoes growing unease across Europe, Danish construction company Tscherning has officially returned its entire fleet of Tesla vehicles. The reason? Not the performance of the cars—but the politics of Tesla CEO Elon Musk. This decision marks a bold stance from the private sector against corporate leadership and adds fuel to concerns about Tesla’s reputation in the European market. With corporate and private consumers alike distancing themselves from the brand, the once-unshakable grip of Tesla on the EV industry is starting to loosen.

the Original

Tscherning, a well-known Danish construction firm, has ended its corporate relationship with Tesla by returning its entire fleet of electric vehicles. The company pointed directly to Elon Musk’s political actions and controversial public statements as the driving force behind the decision. While they praised the technical quality of Tesla vehicles, they expressed discomfort with the image now associated with the brand due to its CEO’s outspoken opinions.

This isn’t the first time a European company has taken such action. Last year, the pharmacy chain Rossmann also dumped its Tesla fleet. Tscherning emphasized that they want to drive vehicles from companies whose values align with their own. As a result, they plan to transition to European-made electric vehicles.

Electrek, a publication focused on electric vehicle news, reported that Tesla’s image in Europe is suffering. According to their analysis, corporate sales are down, and consumer interest is waning. Used Tesla prices are dropping, making them a more attractive purchase for some—but highlighting a troubling trend for the brand overall.

Tesla’s Q1 and Q2 performance in 2025 has shown sharp declines, with a year-over-year dip of around 40%. These are some of the weakest numbers Tesla has posted in the past three years, leading to concerns about sustainability, possible layoffs, and store closures across Europe. Despite the launch of the new Model Y, the brand hasn’t bounced back as expected.

A video posted by Tscherning showing the return of the cars served as a public farewell—and a powerful statement about the growing disconnect between Tesla’s leadership and the values of European businesses.

What Undercode Say:

The Tscherning-Tesla split is more than a symbolic gesture—it’s a signpost of shifting brand loyalties in the EV space. Europe, traditionally a stronghold for sustainability and corporate social responsibility, is reacting against the perceived politicization of tech brands. Elon Musk’s controversial behavior, especially on social media and in political spheres, is beginning to have real-world consequences that affect Tesla’s bottom line.

From a business analytics perspective, this trend is deeply concerning for Tesla. Corporate fleet sales represent a substantial portion of its European revenue. When major companies like Tscherning and Rossmann publicly divest from Tesla, it signals trouble. It could also create a snowball effect—other businesses may follow suit to avoid reputational risks, especially in socially-conscious European markets.

Reputational damage in the EV sector is particularly dangerous. This market is not just about innovation—it’s also heavily driven by ideals of environmental stewardship and ethical branding. Tesla’s identity crisis could open the door for European rivals like Volkswagen, BMW, and Volvo to gain further ground.

Moreover, the resale market tells another story. While new Tesla sales are dropping, used models are becoming cheaper, which may boost demand among price-sensitive buyers. However, this isn’t good news for Tesla’s brand value. Rapid depreciation can shake consumer confidence and impact leasing models, financing strategies, and overall perceived value.

This crisis also exposes a vulnerability in Tesla’s centralized branding. With Elon Musk being such a prominent face of the company, any controversy he’s involved in directly affects Tesla—unlike competitors with more corporate-style leadership that allows for brand resilience.

Finally, Tesla’s lack of localized strategy for the European market may be a key factor. In a region where cultural and political sensitivities matter, brand alignment with local values isn’t optional—it’s essential. Tscherning’s switch to “European alternatives” speaks volumes about regional pride and trust.

🕵️ Fact Checker Results

✅ Tscherning did return its full Tesla fleet as reported.
✅ The reason was political alignment, not vehicle performance.
✅ Tesla sales are declining in Europe, with Q1 and Q2 data confirming a downward trend.

🔮 Prediction

If Elon Musk continues to dominate the narrative around Tesla with political or controversial commentary, we can expect a slow exodus of corporate clients in Europe. Tesla will likely face stronger competition from European automakers that offer both technological innovation and brand values that align more closely with local consumers. Expect companies like Volvo, Mercedes-Benz, and even up-and-coming EV startups to capitalize on this sentiment shift—potentially reshaping the European EV landscape by 2026.

References:

Reported By: timesofindia.indiatimes.com
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