It deters new customers. If a particular brand of car has a target painted on it. Either for ridicule, vandalism or destruction. Who is going to want a car like that? Besides, in terms of quality Tesla has been long surpassed by the incumbents anyway.
I think the keyword here is “Waffen-SS” not “Latvian”. Fascists and racists come in all nationalities. The Dutch really hate nazis, but a sizeable portion of the population aided in the holocaust regardless.