Germany's Rossmann, one of Europe's largest drugstore chains, has announced it will cease purchasing Tesla vehicles for its fleet due to the political views expressed by Tesla CEO Elon Musk. This decision underscores growing concerns about the alignment between corporate values and executive actions, particularly in the context of Musk's vocal support for former President Donald Trump and his controversial social media platform X, formerly known as Twitter.
Rossmann's management, represented by Raoul Rossmann, stated that the decision was driven by Musk's statements and actions, which they believe are incompatible with the values Tesla's products represent. "Elon Musk makes no secret of his support for Donald Trump. Trump has repeatedly called climate change a hoax-this attitude is in stark contrast to Tesla's mission to contribute to environmental protection through the production of electric cars," said Rossmann.
The company will continue to use its existing Tesla vehicles for sustainability reasons but will seek alternative manufacturers for future vehicle orders. This move reflects a broader trend among private Tesla buyers, who tend to have progressive views and are increasingly alienated by Musk's right-wing political leanings and decisions to reinstate banned far-right accounts on X.
Meanwhile, Turkey's first national car brand, Togg, is gearing up to challenge Tesla's dominance in the German market. Togg plans to launch pre-orders for its second model, the TF10, in Germany in 2024, marking the brand's first venture into the European market. This move comes amidst ongoing discussions with Chinese companies to secure strong suppliers in the highly competitive market.
Togg's first model, the TX10, was launched in Turkey in 2023 and has seen substantial success, with sales reaching around 40,000 units. The TF10, which aims to secure a five-star Euro NCAP safety rating, is designed to appeal to the growing demand for electric vehicles (EVs) in Europe, particularly among the Turkish diaspora in Germany.
Rossmann's decision to distance itself from Tesla highlights the potential risks for companies when their leaders' personal views clash with the values of their customer base. Musk's increasingly vocal support for right-wing political views and his actions on X have alienated not only private buyers but also corporate customers. This has contributed to declining Tesla sales in markets where EV adoption is driven by commercial fleets and company car schemes.
The UK, for example, has witnessed scenes of racist mobs destroying properties, exacerbated by misinformation and incitement to violence spread on platforms like X. Musk's perceived support for these movements has tarnished Tesla's brand image in the UK, further complicating the company's market position.
Togg's entry into Germany is strategically significant, given the country's dynamic and competitive EV market. Despite a recent slowdown in EV sales in Germany, Togg aims to capitalize on the market's potential by targeting millions of Turkish expatriates and other EV enthusiasts.
The TF10, Togg's upcoming model, boasts impressive specifications, including an all-wheel-drive long-range version with an 88.5 kWh battery offering a 600 km range, and a rear-wheel-drive short-range version with a 52.4 kWh battery offering a 350 km range. The starting price of the TX10 in Turkey is €45,000, which positions it competitively against Tesla's best-selling models in Germany.
Togg has ambitious plans to export 1 million battery electric vehicles (BEVs) by 2030, with Germany expected to be a key market. The company aims to reach an annual production capacity of 200,000 units, leveraging its partnerships with Chinese firms like Farasis Energy to enhance its battery manufacturing capabilities.
Togg and Farasis Energy laid the foundation for a joint battery cell factory in 2023, with plans to begin manufacturing battery cells by 2026 and achieve a 20 GWh production capacity. This collaboration is expected to bolster Togg's competitiveness in the EV market.
Turkey's growing ties with China in the EV sector are evident in Togg's partnerships and the Turkish government's meetings with Chinese companies, including GAC Aion. These collaborations could position Turkey as a manufacturing hub for Europe and the Middle East, further enhancing Togg's growth prospects.
