A group of Tesla owners in France has launched a lawsuit against the American electric vehicle (EV) giant, citing CEO Elon Musk‘s controversial political positions as the driving force behind their decision. The legal action, filed by the Paris law firm GKA on Wednesday, June 11, 2025, reflects growing tensions between Musk’s leadership and European EV enthusiasts. The case, detailed in a Politico Europe article, highlights a 67 percent drop in Tesla sales in France during May 2024 compared to the previous year, signaling broader industry challenges.

Lawsuit Targets Musk’s Political Influence

The lawsuit stems from Musk’s former role as a key ally to U.S. President Donald Trump during the first 100 days of his second administration, where he led efforts to slash federal spending. However, the relationship soured, leaving Musk sidelined.

Ivan Terel, a partner at GKA representing the owners, stated verbatim, “They don’t want to be associated anymore with Tesla or personified by Elon Musk and his recent political stances.”

The coalition of 10 Tesla owners argues that Musk’s support for far-right groups, including a January 2024 rally for Germany‘s Alternative für Deutschland (AfD) party, has damaged their peaceful use of the vehicles. This led to the invocation of a French civil code article requiring sellers to guarantee clients a peaceful use of goods sold, a law now applied in unprecedented circumstances due to Musk’s political activities.

Vandalism and Sales Decline Hit Tesla Hard

Beyond the legal battle, Tesla faces tangible setbacks. The Politico report notes a 67 percent sales decline in France, based on data from the country‘s PFA registrar, equating to a significant loss in a key European market.

Vandalism has compounded the issue, with dealerships and individual Tesla drivers reporting damaged cars. Terel revealed that several of his clients’ vehicles were targeted, including one with a swastika painted on the side and another defaced with excrement. This unrest has prompted GKA to seek voided vehicle leases and reimbursement of ownership costs, plus additional damages, in the Paris Commercial Court.

The broader European market has felt the ripple effects, particularly after Musk’s AfD speech, where he told the crowd it was time for Germany to “move on” from its Nazi past. This statement sparked a boycott of the EV brand across the continent, with sales plummeting as consumers distance themselves from Tesla’s association with far-right ideologies.

Industry and Economic Implications

This lawsuit and boycott could reshape the EV landscape in Europe. Tesla, a leader in the EV sector with its advanced battery technology and over-the-air software updates, now contends with a damaged reputation that may deter potential buyers.

The 67 percent sales drop in France alone—translating to thousands of unsold vehicles—could cost the company tens of millions of USD, given the average Tesla Model 3 price of approximately $40,000. Competitors like Volkswagen and Renault, who offer similar electric ranges, may gain ground as European consumers seek alternatives.

Regulatory scrutiny could also intensify. The commercial court’s decision on the lawsuit’s merit might set a precedent for holding corporate leaders accountable for personal political stances affecting product use. Meanwhile, Tesla’s focus on innovation, such as its 300-mile range per charge, risks being overshadowed by these controversies, potentially slowing its market expansion in the region.

As the case unfolds, several other Tesla owners have inquired about joining, suggesting a growing movement. This situation underscores the delicate balance between a CEO’s public image and a company’s brand integrity, leaving the EV industry watching closely for the court’s next move.