"Elon's Antics" Slam the Brakes on Tesla Acquisitions for German Fleet Managers
Tesla car purchases by parking authorities are under re-evaluation.
It seems like Elon Musk's antics and controversial image are taking a toll on Tesla's popularity among German fleet managers. A recent survey by Deutsche Automobil Treuhand (DAT) reveals that 35% of these managers are reconsidering the purchase of Tesla vehicles, while 8% have had their company car Tesla-owning employees express a desire to return them. On the other hand, a whopping 58% of fleet managers make their decisions independently of Elon Musk's persona.
In recent months, several companies have publicly distanced themselves from their Teslas due to Musk's political activities. The DAT survey, based on 117 conversations with fleet managers, validates this trend.
Martin Weiss, head of DAT vehicle valuation, observes, "Statements from fleet managers in the current DAT Barometer show that these important multipliers in the automotive market are considering the acquisition of Tesla vehicles for their fleets." While Musk's activities have altered the market's perception of the Tesla brand, other manufacturers have caught up in terms of technology, Weiss notes.
However, Weiss also suggests that the recent decline in Tesla registrations in Germany (-71% in the first two months of the year) might be due to a production shift, as the announcement of the now available facelift for the Model Y is "certainly playing a role here."
Industry expert Ferdinand Dudenhöffer has analyzed Tesla's recent pricing strategy, but little has changed. According to Dudenhöffer, "New models from brands like VW, Skoda, or BMW are significantly more attractive in their entry-level versions than the aging Tesla models" in terms of prices actually paid. Tesla may face a tough time reversing the downturn in registrations in the coming months due to high prices and outdated models, alongside Musk's questionable actions. In Dudenhöffer's words, "The Tesla hype is over."
Interestingly, the used Tesla market seems untouched at the moment. While Tesla's residual values have recently declined, this is attributed to factors such as market development and pricing policy, rather than the "Elon Effect." However, it is reasonable to expect that Elon Musk's persona and associated discussion will further negatively impact residual values.
In summary, Elon Musk's image and actions have led to negative consequences for Tesla in the German market, affecting both new and potentially used vehicles and potentially impacting company fleet sales through damage to the brand.
- Tesla Models
- Elon Musk
Insights:
- The current impact of Elon Musk's image and actions on Tesla's market share and sales in Germany has been significant. Tesla experienced a 41% reduction in sales in 2024 and a much larger reduction in the first two months of 2025 (70%) compared to the same period in the previous year[1]. This trend has continued into 2025, with 94% of Germans stating they would not buy a Tesla[1][5].
- The political controversy surrounding Elon Musk, including perceived alignment with far-right ideologies, and increased competition from other EV manufacturers have contributed to Tesla's declining market share in Europe[1][4].
- The transition to a new Model Y design may have temporarily slowed sales as customers wait for the latest versions[3].
- Tesla's struggles in Germany are also affecting their car fleet business, with 35% of fleet managers reconsidering their purchase decisions[2]. This development, coupled with the widespread rejection of Tesla in Germany, likely affects the resale value and demand for used Teslas.
- I'm not sure if Tesla's market share will recover significantly due to Elon Musk's controversial image and the increasing competition from other EV manufacturers.
- Some fleet managers might reconsider purchasing Tesla autoscout24 due to their concerns about the company's current values and Elon Musk's actions.
- Tesla's residual values for used vehicles could be impacted negatively as Elon Musk's persona and associated discussion continue to generate controversy.
