Corporate Fleet Managers Reassess Tesla Amidst Perception Shift

The perception of Elon Musk is having a significant impact on Tesla's standing among corporate fleet managers in Germany. Recent findings from a survey conducted by the Deutsche Automobil Treuhand (DAT) indicate that 35% of fleet managers are reconsidering their procurement of Tesla vehicles due to concerns related to Musk's public persona. Additionally, 8% of respondents reported that employees eligible for company cars are contemplating returning their Teslas.

Despite this, 58% of fleet managers stated that their decisions are made independently of Musk's influence. The survey, which included 117 discussions with fleet leaders, reflects a broader trend of companies parting ways with their Tesla vehicles, particularly as Musk's political activities have become more prominent.

Martin Weiss, the head of vehicle evaluation at DAT, noted that the current sentiment among fleet managers suggests a shift in how Tesla is perceived in the automotive market. "Elon Musk's actions have altered the brand's image," Weiss stated, adding that other manufacturers have caught up in terms of technology, diminishing Tesla's previous pioneering advantage.

Furthermore, Weiss pointed out that the recent decline in Tesla's new vehicle registrations--down by 71% in Germany during the first two months of the year--could also be attributed to production changes and the introduction of a facelift for the Model Y.

Industry expert Ferdinand Dudenhöffer has analyzed Tesla's pricing strategy amidst these developments, questioning whether the company is employing discounts to stimulate sales. His findings suggest limited changes, stating, "More significant measures beyond a facelift of the Model Y were anticipated to combat the steep declines."

Dudenhöffer remarked that the excitement surrounding Tesla appears to have waned, with new models from competitors like Volkswagen, Skoda, and BMW offering more attractive pricing options compared to Tesla's older models. This shift poses challenges for Tesla in maintaining its sales momentum in the coming months.

On the used car market front, while there has been a noticeable dip in the residual values of Tesla vehicles, this trend has not yet been directly linked to the so-called "Elon effect." Instead, Weiss attributes it to broader market trends and pricing strategies. However, he acknowledges the potential for Musk's public image to create further adverse effects on resale values.

Currently, platforms like Mobile.de do not indicate an oversupply of used Teslas. The availability of these vehicles has increased by 2.2% since November 2024, yet they are selling 12.9% faster, suggesting a steady demand. Similarly, AutoScout24 has reported that Musk's political actions and changing public perception have not yet impacted the used car market significantly.

Despite these developments, the overall second-hand electric vehicle market remains relatively small, with electric cars accounting for only 2.7% of ownership transfers in comparison to 13.5% of new registrations last year.