Courtesy of Tesla, Inc.
Tesla once again finds itself within regulatory crosshairs — this time in France, where government investigators have accused the electric vehicle (EV) maker of engaging in “deceptive business practices” tied to its vehicle sales and Full Self-Driving (FSD) claims.
According to a report from Reuters, the French finance ministry’s Competition, Consumer Affairs, and Fraud Control office has issued Tesla a formal order to correct several alleged infractions. These include misleading consumers about the autonomous capabilities of its vehicles, issuing sales contracts that lack key delivery details (such as time, date, or location), and delaying customer refunds.
The investigation began in 2023 but escalated recently as Tesla’s brand faces growing scrutiny across Europe. Tesla has been given four months to comply with French consumer protection laws or face fines of €50,000 per day until compliance is achieved. As of this writing, Tesla has not issued a public response to the order.
This enforcement action comes during a period of significant turbulence for Tesla in the European market. The automaker’s EU vehicle sales plunged 49% year-over-year in April alone, with May marking the fifth straight month of decline for some of its key European markets. Analysts have partly tied this sharp decline to CEO Elon Musk’s polarizing political activity, including his endorsements of far-right parties such as Germany’s AfD.
Further complicating matters, a group of Tesla owners in France recently filed a lawsuit accusing the company of allowing its vehicles to become symbols of far-right politics, alleging reputational damage tied to Musk’s alignment with former U.S. President Donald Trump.
As Tesla continues to grapple with political backlash, legal battles, and market share erosion in Europe, regulatory scrutiny like this could further hinder the automaker’s global growth trajectory. That said, Tesla’s stock price has held strong throughout these trying times, even seeing an uptick recently with the company’s much-anticipated Robotaxi launch in Austin, Texas.
