Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Tesla drivers in France are suing the company to terminate the leases for their vehicles, alleging that chief executive Elon Musk’s political activities have made their cars “far-right totems”.
The lawsuit brought by about 10 customers alleges that Musk has “tarnished” the Tesla brand through his “far-right” politics. This has led to an increasing hostility towards their cars that has prevented them from “enjoying” their vehicles, which many acquired for environmental reasons.
The lawsuit is at an early stage and will be assessed by judges at Paris’s commercial court before a decision is taken on whether to advance the suit. About 10 Tesla customers are involved in the case, with others able to join the action, according to Paris law firm GKA.
Most leases for Tesla drivers last for about four years, with an option to buy the vehicles outright at the end of these contracts. The case seeks to terminate the leasing agreements signed with Tesla.
The case leans on a range of inflammatory political acts from Musk in recent months, from his apparent repeated use of a gesture resembling a Nazi salute following Donald Trump’s inauguration in January, to allegations that UK Prime Minister Sir Keir Starmer was “complicit in rape” over the handling of historic child abuse cases in the UK when he was director of public prosecutions.
The suit also alleges that customers face a higher risk of vandalism against their cars because of Musk’s actions, higher insurance costs and a depreciation in the value of the cars.
Lawyers Patrick Klugman and Ivan Terel said that vandals had engraved one client’s Tesla with a swastika, while others had defecated on a client’s car.
The suit uses civil law that obliges leasers to enable renters to “peacefully enjoy” what they have rented. Some customers of Tesla vehicles were now “prisoners of their contracts” because of Musk’s actions, Klugman told the Financial Times.
“It will be interesting to see someone who is so liberal like Mr Musk to be confronted with the responsibility of their words on their businesses. Freedom — even among the most liberal among us — doesn’t come without responsibility. The actions of business leaders engage their businesses,” he said.
The lawsuit comes as sales of Tesla have fallen dramatically in Europe, as buyers have been turned off the brand over Musk’s political positioning. In France, sales of Teslas dropped 67 per cent in May compared with the same period a year previously, with new registrations at their lowest level since July 2022, according to data from Plateforme Automobile, an industry body.
Tesla was not immediately available to a request for comment.
Additional reporting by Stephen Morris in London
Read the full article here
