Tesla finds itself under the French spotlight for all the wrong reasons. The American EV maker has now been slapped with a formal injunction by France’s consumer watchdog, the DGCCRF. The charge? Misleading advertising and dubious business practices, according to French authorities, that veer off the legal path.
The case zeroes in—unsurprisingly—on Tesla’s most contentious selling point: its so-called Full Self-Driving (FSD) system. French investigators concluded that Tesla had misled consumers, suggesting their cars were closer to being autonomous than they are.
A familiar critique, echoing rulings from across the Atlantic and a notable verdict from Munich in 2020. Despite its grandiose name, FSD requires a vigilant driver. That’s far from autonomous driving, according to the official bodies.
Reimbursement troubles
But it doesn’t stop there. The DGCCRF uncovered a string of other infractions. Customers were allegedly handed contracts missing key legal protections, were pressured into early payments, and were left hanging when they asked for refunds when they changed their minds over the purchase.
Delivery arrangements were vague, and in some cases, receipts never arrived altogether. If true – and there’s little room for doubt -, it confirms a picture of a brand high on promises and tech but low on consumer service.
What’s next? The DGCCRF has given Tesla France four months to rectify its issues or face a €50,000 daily fine—a steep price, even for a company that once flirted with trillion-dollar valuations.
Globally, the regulatory tide was never in favour of Tesla’s marketing of its autonomous driving technology. In the US, multiple investigations have probed the company’s Autopilot and FSD branding.
California’s DMV called out the terminology years ago, and the Department of Justice joined the fray in 2023 with a criminal inquiry. Even Germany, typically no stranger to strong automotive claims, instructed Tesla to tone it down in a case before the Munich court, dating back to 2020.
Market share slashed
Tesla hasn’t backed down on the development and deployment of its autonomous driving technology. Just last weekend, the brand rolled out 20 self-driving Model Ys in Austin, Texas. Immediately, it triggered an investigation from the American road safety association NHTSA after several incidents were reported, like certain cars driving in the wrong direction.
The decision from the DGCCRF comes at a time when Tesla’s European fortunes are further on the skids. New data from the European Automotive Association, ACEA, shows the company’s EU registrations plummeted 45% in the first five months of 2025. In May, registrations nosedived once more by a steep 40% compared to the same month a year earlier.
Tesla’s European market share now hovers around a slender 1.1%, less than half of what it was a year ago. Meanwhile, the rest of the EV sector is speeding ahead, with electric registrations up 26%—hardly the backdrop Musk and company were hoping for.
Whether it can realign its compass in Europe, or whether the old continent will leave the pioneer hanging out to dry, remains an open—and increasingly urgent—question.
