Tesla in the crosshairs of French authorities: accusations of unfair practices and threat of heavy sanctions

After months of difficult sales, the carmaker led by Elon Musk is now also under pressure from French authorities. As reported by Reuters, the Office of Competition, Consumer Affairs and Fraud Control of the Ministry of Finance has ordered Tesla to cease a series of commercial practices deemed deceptive, under penalty of fines of 50,000 euros per day.

The investigation, which began in 2023, has uncovered several irregularities ranging from information provided on the vehicles' autonomous driving capabilities, to a lack of clarity in sales contracts, to delays in refunding customers. According to investigators, the company omitted essential details such as the date, time and place of delivery in the contracts, creating situations of uncertainty and ambiguity to the detriment of consumers.

One of the most significant accusations concerns misleading communication about the assisted driving system. Tesla has often advertised its cars as close to full autonomy, but according to the French authorities this is an overly optimistic, if not deliberately misleading, representation of the current state of the technology. This issue, moreover, is already the subject of controversy in other countries and represents one of the central challenges for the entire automotive sector.

The official request from the French government is clear: Tesla has four months to comply with consumer protection regulations. Otherwise, daily fines of 50,000 euros will be imposed until the rules are fully respected. This is a serious blow for a brand that over the years has built its prestige on the image of innovation and avant-garde, but which today finds itself having to deal with a reputation increasingly exposed to criticism and controversy.

In addition to regulatory issues, Tesla is also facing a social and political climate that could further damage its image in Europe. A group of French customers have filed a lawsuit against the automaker, accusing it of turning its vehicles into “totems of the far right,” according to Reuters. The backlash has been sparked by Elon Musk’s growing involvement in divisive politics, from his support for former U.S. President Donald Trump to his public endorsement of Germany’s far-right AfD party.

Meanwhile, Tesla electric vehicle sales are declining in several European markets, also due to the progressive misalignment between the brand image and consumer expectations. In an era in which brand identity is observed through the lens of social commitment and value coherence, the polarizing figure of Musk represents a double-edged sword.

The legal and reputational battle in France could therefore represent not only an isolated case, but a wider alarm bell for Tesla in the old continent. Europe confirms itself as a demanding market, where innovation is not enough if it is not accompanied by transparency, reliability and compliance with regulations.

Tesla now has a few months to respond. It can do so by adapting its practices to French law, or by engaging in litigation that is likely to attract further media and public attention. In either case, the price to pay — in economic and image terms — could be high.