Things are not easy for Tesla in Europe, and in addition to the sharp decline in sales since the beginning of the year, Elon Musk’s brand now risks being accused of “deceptive” business practices regarding the fully autonomous driving capabilities of its models.
French investigators have ordered Tesla to stop what they call “deceptive business practices,” either by announcing its models as fully autonomous or face thousands of euros in fines.
Investigators from the Directorate-General for Competition, Consumer Affairs and Fraud Control of the Ministry of Finance stated this Tuesday that the company is involved in deceptive business practices regarding the fully autonomous driving capabilities of its models, as well as failing to provide receipts for cash payments or responding in a timely manner to refund requests.
The office said that the investigation began in 2023, and ordered Tesla to comply with the regulations within four months or face fines of €50,000 per day after that date until it complies with the rules.
This is not the first time it faces legal action regarding the autonomous capabilities of its vehicles. In Germany, the competition regulator sued Tesla in 2020 over its marketing practices, claiming that the company promises more in its advertisements than it can deliver. However, Elon Musk’s brand successfully appealed and continues to advertise its 100% electric models as autonomous in Germany.
Tesla has been facing difficulties in Europe in recent months, with sales of its electric models registering sharp declines in several markets, a decline that is partly attributed to the political activities of CEO Elon Musk.
In addition, recently, a small group of Tesla model owners in France filed a lawsuit against the company, arguing that their vehicles have become authentic “totems of the far right” following Musk’s involvement with U.S. President Donald Trump and Musk’s public support for the German far-right party.