Does Elon Musk’s misbehavior give grounds to terminate his contract with Tesla?

This is what a statement received this morning at the editorial office of Mobiwisy from the law firm GKA claims.

According to two of their lawyers, several clients wish to terminate their leasing contracts with Tesla, claiming they can no longer peacefully enjoy their vehicle due to the public behavior of its CEO, Elon Musk. The argument made is that Musk’s political stances, deemed polarizing and even marked by the far right, have transformed the Tesla brand into a political symbol, exposing its owners to hostile acts. While awaiting confirmation of a lawsuit, which to our knowledge has not yet been initiated, this statement invites us to be very cautious as the firm is indeed in the process of soliciting potential clients. As proof, the statement was not sent to us by the law firm itself, but by a PR agency…

If this action comes to fruition, does it have chances of succeeding legally? That’s far from certain. Under French law, the termination of a leasing contract is based on the existence of a contractual breach or a serious disturbance in the enjoyment of the property. However, in this case, the vehicles are functioning normally, and Tesla has not breached its contractual obligations. The alleged harm is moral and social: discomfort in using the vehicle, feeling unwittingly associated with political ideas, possible insults, or acts of vandalism. But for disturbance of enjoyment to be recognized, it must exceed this simple subjective discomfort. It assumes a serious, lasting, and objectively verifiable hindrance to the normal use of the property. Concrete evidence such as assaults, damages, or inability to access certain locations, etc., would therefore be essential to support a request for termination or compensation on a case-by-case basis.

Furthermore, some claims in the statement, such as the assertion that Elon Musk displays a “vehement support for the far right” notably through a “outstretched arm reminiscent of the Nazi salute during Donald Trump’s inauguration” have not been publicly established to date. Everyone can have their opinion, and we have freely expressed ours at Mobiwisy, but the law is not a matter of feeling. The lawyers assert that “Tesla vehicles have become totems of the far right”. Again, this is an opinion, not a legally established fact. There are political perceptions associated with certain brands, but no legal basis establishes that an object becomes a political “totem” due to the opinions of the CEO of the company that produces it. Such statements are therefore subjective. Worse, if such accusations are not proven, they could expose their authors to defamation claims.

The announced action seems to be more of a communication operation and solicitation of potential clients rather than a solid legal demonstration. Nothing inherently prohibits suing a company for disturbance of enjoyment, but it is necessary to prove the causal link between the behavior of the executive and a concrete personal harm. Failing this, the court could deem the request unfounded and subject to sanctions.

This case nevertheless raises an unprecedented question: how far can the political opinions of a leader affect the perception and utility value of a consumer good? The debate is on, but its judicial outcome remains highly uncertain.

ALSO READ: Can Tesla fire Elon Musk?