Tesla under fire in France for "deceptive" practices amidst sales slump

Tesla is facing growing pressure in France as government investigators have ordered the company to cease what they call "deceptive business practices." As if it wasn't enough, the automaker is struggling with a dramatic plunge in sales across Europe and a lawsuit from French owners who claim CEO Elon Musk's political views have destroyed the brand's image.

Investigators from the finance ministry's Competition, Consumer Affairs, and Fraud Control Office (DGCCRF) have given Tesla four months to comply with French regulations. If the company fails to do so, it will be fined $55,000 per day. The investigation, which began in 2023 following numerous consumer complaints, identified several key areas of concern.

As always, the allegations are focused on Tesla's marketing claims regarding its "Full Self-Driving" (FSD) capabilities. French authorities call these claims misleading, promising a level of automation that is not currently achievable or legally permitted on French roads.

This is not the first time Tesla's autonomous driving technology has come under legal scrutiny in Europe. In 2020, a German court banned Tesla from using similar advertising language, although this ruling was later overturned on appeal. The German appeals court reasoned that consumers interested in purchasing a Tesla would likely research the features and understand that "Autopilot" and "FSD" are advanced driver-assistance systems, not fully autonomous ones.

The French investigation also found that Tesla has been issuing sales contracts without a specific date, time, or location for vehicle delivery, leaving customers guessing. The agency also cited long delays in refunding canceled orders.

In May, the company's sales plummeted by 67 percent compared to the same month in 2024. This downturn is not isolated to France, with significant sales drops also reported in other major European markets. While increased competition in the electric vehicle sector and an aging model lineup are contributing factors, a growing number of consumers and analysts are pointing to the "Musk effect."

A small but vocal group of ten Tesla owners in France has taken the unusual step of filing a lawsuit against the automaker, arguing that their vehicles have become "far-right totems." They contend that Elon Musk's public endorsements of far-right political parties in Europe and his association with President Donald Trump have made their cars targets for vandalism and have diminished their resale value. The owners want to terminate their lease agreements, asserting that the company has failed to guarantee the "peaceful use of the goods sold," a tenet of the French civil code.

Via