Elon Musk’s politics impacting fleet vehicle choice (video)

Elon Musk’s political views are becoming an increasing consideration for UK fleet customers choosing Tesla, according to the latest Fleet News at 10 webinar.  

The topic was discussed as part of the monthly webinar in the wake of declining sales for the US electric vehicle (EV) brand and whether this will likely continue as a result of the Tesla chief executive’s viewpoints.

Fleet accounted for roughly 83% of Tesla’s UK registrations last year and the Model Y was also the most popular choice for the true fleet sector.

According to recent data by European trade body ACEA, Tesla’s sales dropped by 45% across Europe from 18,161 to 9,945 units year-on-year in January.

This follows on from Tesla’s global sales declining for the first time in over a decade last year, albeit by 1%.

Tesla’s UK sales dropped by 18.2% in January, but in France the decline was more pronounced with sales dropping by 63%, Sweden 44%, Norway 38% and in the Netherlands down 42%, all coinciding with Musk’s entry into US politics.

The upcoming model changeover of the Model Y has also played a part in volume decline.

Shares in the electric car business have also been falling since February 19, with a 15.4% drop recorded as of March 11.

Dale Eynon, director of Defra Group Fleet Services, attributed Tesla’s decline to a combination of factors: “Some of the technology is still class-leading, but other original equipment manufacturers (OEMs) have caught up with them.

“The brand is known for being pretty hardball when it comes to fleet discounting and it doesn’t have the best reputation for fleet service, so people are starting to vote with their feet quite heavily.”

Tesla took some steps forward to improve UK fleet relations last year, while it also launched a range of fleet focussed initiatives in the summer.  

Tesla is facing stiff competition from all areas of the market, including established car brands, as well as many new entrants from China.

The Elon Musk factor

A recurring theme in discussions around Tesla’s recent struggles is the role of Musk.

Musk’s increasing involvement in controversial political and social debates—particularly through his activity on X (formerly Twitter)—has made him a divisive figure.

The most recent flashpoint was the Tesla CEO’s controversial hand salute that was made as part of US President Donald Trump's inauguration rally on January 20.

Paul Hollick, chair of the Association of Fleet Professionals (AFP), said Tesla’s popularity is likely to survive its current downturn, but highlighted the political ramifications: “The halo of Elon being aligned with Trump doesn’t align with a lot of customers.

“Retail and corporate customers will think about whether they want to be in a Tesla due to the politics, rather than judging the car on its technology, the build quality or the charging infrastructure.”

For fleet managers, the concern is not just about Musk’s politics but also the potential brand risk associated with putting employees in Tesla vehicles.

Companies with strong environmental, social, and governance (ESG) policies may find it increasingly difficult to justify Tesla as a fleet choice when Musk's actions could be seen as misaligned with corporate values.

Eynon said there has been no edict by central government to remove Teslas from fleet choice lists.

However, he explained: “It is a more complex picture than saying whether you like Elon or not.

“But I suspect drivers will choose to go to other brands where the vehicles are just as good and there aren’t the politics associated with it.”

Tesla’s strengths and weaknesses in fleet

Despite declining sales, Tesla still offers fleet managers significant advantages.

One of the brand’s key strengths remains its national charging infrastructure.

As Hollick points out: “Tesla has to be envied by any other OEM for how it has come to market and how well the Supercharger network works.”

However, as Lorna McAtear, National Grid head of fleet, another industry expert, noted, Tesla’s Supercharger network—once a unique selling point—is no longer exclusive to Tesla owners.

She said: “A number of people did buy Teslas because of the Supercharger network.

“Now it’s open to all, it gives you other options, you’re not just tied to Tesla.”

Additionally, there still remains concerns about Tesla’s approach to fleet management.

Duncan Webb, AA fleet director, highlighted that new Chinese EV entrants are providing a more fleet-focused service.

Hollick said that Tesla launched as a retail first brand and has had to play catch-up with other OEMs in terms of being well set up to work well with fleets and the way they manage vehicles.

Fleet decision-makers must now weigh Tesla’s technological advantages against the growing reputational risks and increased competition in the EV market.

With viable alternatives from legacy automakers and new entrants offering competitive vehicles with better fleet support, Tesla’s dominance is no longer guaranteed.

Eynon speculates on Musk’s future role in the company: “I’m not sure how interested he is with Tesla anymore anyway. 

“He may become more detached from the brand, and that may happen sooner rather than later if sales continue to decline as a result of his association.”

Younger drivers swayed most 

New research from The Green Insurer Over suggests that more than a third (35%) of motorists say they have been put off buying or owning a Tesla by the political actions and comments of Musk.  

The impact is particularly pronounced amongst younger drivers, with half (50%) of 18-24-year-olds saying that Musk’s views have deterred them from purchasing a Tesla. This number drops to 31% amongst those aged 65 and over.  

However, two in five (42%) say that they haven’t been put off buying or owning a Tesla vehicle due to the CEO’s views, with slightly more men (45%) than women (39%) saying they are unaffected by any controversary from his comments.

Paul Baxter, CEO at The Green Insurer, said: “While Tesla remains a dominant player in the EV market, it would appear that some customers are opting for alternative brands or delaying their switch to electric vehicles altogether.”  

Watch the full Elon Musk debate on Fleet News at 10