PARIS – The French Ministry of the Economy has issued a stern warning to Tesla, citing the company for “deceptive business practices” and demanding compliance within four months or face substantial daily fines.
Immediate Impact
Following an extensive investigation that began in 2023, French authorities concluded that Tesla has repeatedly misled consumers, breaching several consumer protection laws. The Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) highlighted numerous violations, including misleading claims about Tesla’s Full Self-Driving (FSD) capabilities.
Key Details Emerge
The DGCCRF’s findings, released today, detail several infractions by Tesla, including incomplete sales contracts and misleading marketing of the FSD system. The report accuses Tesla of failing to provide critical information on delivery methods and timelines, and notes the company’s inconsistent refund policies.
- Sales contracts lacking delivery details
- Payments demanded before withdrawal period ends
- Misleading claims about autonomous driving capabilities
- Delayed refunds for canceled orders
- Insufficient delivery information
Industry Response
The announcement comes as Tesla faces mounting scrutiny over its business practices in Europe. Industry experts suggest that the company’s approach to sales and marketing may need significant adjustments to meet European standards.
By the Numbers
50,000 euros ($58,000 USD) – Daily fine if Tesla fails to comply within four months
7,500 Euros – Cost of FSD software in France
Background Context
Since 2015, Tesla has marketed various levels of automation, starting with Autopilot and progressing to FSD. Despite selling these features at premium prices, the technology remains at a “level 2” driver-assist stage, requiring active driver participation. This discrepancy has fueled consumer dissatisfaction and regulatory scrutiny.
Meanwhile, industry experts warn that Tesla’s ambitious promises regarding autonomous capabilities have not been met, leading to disillusionment among consumers.
Expert Analysis
According to sources familiar with the investigation, the timing is particularly significant because it coincides with Tesla’s recent Robotaxi launch in Austin. French regulators are keen to ensure that Tesla’s marketing aligns with the actual capabilities of its vehicles.
Regional Implications
The move represents a significant shift from the more lenient regulatory environment Tesla has experienced in other regions. French authorities are setting a precedent for stricter enforcement of consumer protection laws, which could influence other European markets.
What Comes Next
If Tesla fails to address these issues, the financial penalties could erode its profits in France. With a current sales rate of a few thousand cars per quarter, the fines could substantially impact Tesla’s bottom line in the region.
The company now faces a critical decision: adapt to meet regulatory demands or risk losing its foothold in the European market.