Tesla is being sued by ten customers in France due to Elon Musk’s political activity, the Financial Times reported on Wednesday.
The French Tesla owners are alleging that the company’s CEO has “tarnished” the brand, turning the vehicles into “far-right totems.”
In addition to his role in the U.S. Administration as head of the Department of Government Efficiency (DOGE) until late May, Musk also became involved in politics in Germany and the UK, stirring controversy across Europe.
Combined with intensifying competition from South Korean and Chinese brands, the transition to the refreshed Model Y and Musk’s involvement in politics are seen as key reasons for the brand’s sales slump in Europe since early 2025.
The lawsuit will first be brought before Paris’ commercial court before moving forward as a civil action. Although it began with ten complaints, additional drivers may join the case later, according to the report.
The suit is based on civil law, which requires leasing companies to allow renters to “peacefully enjoy” the vehicles that they leased.
The plaintiffs seek to terminate their leases, stating that their vehicles face a higher risk of vandalism, recalling the protests against Tesla vehicles and locations earlier this year.
Drivers reported that insurance costs on their vehicles have risen and depreciation has accelerated.
Tesla in Europe
Tesla sold 721 electric vehicles in France last month, according to national data. The figures represented a 67% plunge year over year.
In Sweden, Portugal and Ireland, registrations also dropped over 50% from May 2024. Figures in Germany, the largest auto market in Europe, reached 1,210 units, while 2,016 vehicles were sold in the UK — registrations dropped 36% year over year in both countries.
Contrary to the overall sales decline across the continent, Tesla’s registrations in Norway surged over 200% in May, and its Model Y was Norway’s top-selling car (across all powertrains) for the second consecutive month.
The company is testing its supervised FSD (Full Self Driving) system in Europe, as it awaits regulatory approval in the old continent.
On Tuesday, Elon Musk said on X that Tesla is scheduled to begin offering its fully autonomous ride-hailing service in Austin on June 22, but the date could still change.
Last week, as Donald Trump and Elon Musk engaged on a public feud, Tesla shares plunged dramatically.
Shares fell 14% on Thursday, dropping from a previous close of $332 to $284. The loss was equivalent to $152.4 billion in market value — the stock’s biggest one-day slide on record.
However, the stock rebounded over the last four sessions and is currently trading 2.7% higher at $334.77. The stock soared 83.9% over the past twelve months.
