Elon Musk’s backing of Donald Trump is hurting Tesla’s struggling EV business in Europe

While many of Musk’s controversial thoughts eventually fizzle out, his support for Trump is having a tangible impact on his EV company, Tesla, in Europe. 

On Tuesday, Rossmann, one of Europe’s largest drugstore chains, said it was suspending Tesla vehicle purchases “with immediate effect.” 

Its reason? Musk’s vocal support of Trump.

“Elon Musk makes no secret of his support for Donald Trump. Trump has repeatedly described climate change as a hoax – this attitude is in stark contrast to Tesla’s mission to contribute to environmental protection through the production of electric cars,” Raoul Roßmann, Rossmann’s spokesman for the management, said in a statement.

Thirty-four of Rossmann’s 800 vehicles are Teslas, the company’s spokesperson told Fortune. The company plans to continue using those vehicles for “sustainability and resource conservation.”

Rossmann is the first major business to cite Musk’s political stance as a reason to halt future Tesla purchases. Other European companies have dropped orders from Tesla for different reasons. For instance, software giant SAP said it would stop offering Teslas as company cars for employees as Musk’s numerous price cuts add uncertainties, unlike other car makers. 

Closer to home, Hertz, a Florida-based car rental company, is reeling from its big (bad) bet on Tesla, resulting in it offloading tens of thousands of the company’s vehicles. European leasing companies have faced a similar predicament, forcing Tesla to offer unofficial discounts to mollify them. 

The European EV market is far larger than that in the U.S., but demand has slumped owing to strong competition and fewer subsidies. That’s hurt Tesla significantly, as the region’s largest countries have reported sharp drops in sales for the first seven months of the year. 

The Musk dilemma

Where Musk stands on the broader debate surrounding clean technology is still unclear. Musk’s companies have pioneered the scale-up of EVs, which are seen as a novel alternative to fossil fuel-powered vehicles and a key step towards a green transition. For that reason, the world’s richest man is regarded as somewhat of a hero—depending on who you ask. 

But the billionaire, a self-proclaimed environmentalist, has also said that the “climate change alarm is exaggerated in the short term” in December. Not to forget, Musk is also an avid private jet user, making him a big polluter personally. 

As the European drug chain highlighted, Musk’s support for Trump can seem like a stark contrast given Tesla’s focus on electric cars. The SpaceX CEO has spoken about a “devastating” effect a Trump presidency might have on the EV market—including on Tesla. 

Still, Musk’s support doesn’t stop at his endorsement of Trump. He created a political action committee (PAC) that backs the former president, although the amount he is donating is still disputed. The PAC is now being investigated over data fraud concerns. 

Trump’s comments in the past have been at odds with Tesla’s business. The Republican nominee once said EVs would “destroy the country” and “cost too much.” But since Musk pledged support for him, Trump said he has “no choice” but to be on team EVs.   

With just months to go before the U.S. election, the story of how Musk’s political stance affects his businesses—in and out of America—could continue to unfold. 

Representatives at Tesla didn’t return Fortune’s request for comment.

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