The French Ministry of the Economy has delivered a substantial blow to Tesla, ordering the company to comply with local laws regarding deceptive business practices within four months or face hefty fines.
If Tesla fails to meet this directive, it will incur daily penalties of €50,000 (approximately $58,000). The ministry’s investigation, prompted by customer complaints through the SignalConso service, uncovered numerous violations including misleading claims regarding the company’s fully autonomous driving capabilities.
French authorities found that Tesla misled customers about its Full Self-Driving (FSD) software, which the company currently sells for €7,500.
Elon Musk’s Controversial Statements Add to Tesla’s Troubles in France
Despite its name, FSD does not provide fully autonomous driving; instead, it functions as a level 2 driver assistance system that still requires human oversight. Presently, the FSD features are not operational in France, meaning buyers are unable to utilize the software they have purchased.
Additionally, the French investigation highlighted chaotic practices in Tesla’s vehicle ordering and delivery processes. Issues ranged from incomplete sales contracts to rapidly changing delivery dates and locations, leaving many customers frustrated.
Mismanagement of refunds for reservation fees was also cited as a significant concern, as previous assurances of full refunds have not always been honored in a timely manner.
The company’s controversial CEO, Elon Musk, is further complicating matters, facing lawsuits from French Tesla owners seeking to exit their leases, allegedly due to Musk’s polarizing public statements.
With steadily declining sales in France, Tesla’s financial viability in the region could be strained further by the imposed fines. Given that the average selling price of a Tesla in the country is around $60,000 at a mere 2% profit margin, these fines could effectively erase any profit Tesla hopes to gain from sales in France.
