Tesla Under Fire in France: Deceptive Practices Probe, Plunging Sales, and Political Backlash

Tesla is facing mounting legal and reputational challenges in France as government regulators have accused the electric vehicle giant of engaging in “deceptive business practices.” The crackdown comes amid a sharp decline in Tesla's European sales and a lawsuit from French customers alleging that CEO Elon Musk's political views have damaged the brand.

The investigation, led by France’s Competition, Consumer Affairs, and Fraud Control Office (DGCCRF), stems from a wave of consumer complaints dating back to 2023. Authorities have now given Tesla four months to comply with local regulations or face daily fines of €50,000.

At the heart of the issue is Tesla’s marketing around its "Full Self-Driving" (FSD) technology. French officials argue that the claims overstate the capabilities of Tesla's systems, misleading consumers into believing the vehicles are more autonomous than they actually are. The country does not permit the level of automation that Tesla advertises.

This isn’t Tesla's first legal battle in Europe over autonomy claims. In 2020, a German court initially banned Tesla’s use of similar terms like “Autopilot,” though the decision was later overturned on appeal.

The French probe has also flagged other concerning practices. Tesla has allegedly issued sales contracts with no clear delivery details—no confirmed time, date, or location—leading to confusion for buyers. Moreover, the company is being criticized for significant delays in refunding canceled orders.

Tesla’s sales numbers have taken a nosedive. In May 2025, the company saw a 67% drop in sales compared to May 2024, with similar declines reported across other European markets. Analysts point to a combination of increased EV competition, aging product lineup, and what’s being called the “Musk effect.”

That effect is now the subject of legal action. A group of ten Tesla owners in France has filed a lawsuit claiming that Musk’s alignment with far-right politics and endorsements of controversial figures have tarnished the brand. They say their Teslas have become targets for vandalism and claim the vehicles now symbolize far-right ideology in the public eye. The plaintiffs argue this violates their right to the “peaceful use of goods sold,” a concept protected under French civil law. They are seeking to terminate their lease contracts.

With France tightening regulations and public perception shifting, Tesla faces a complex battle to maintain its position in the European EV market.