The French government has just made a shocking decision when it announced that it will suspend Tesla’s operations in the country and will impose severe restrictions on the American  auto industry. This move is considered unprecedented in the related economic relationship and the consequences have quickly spread, with the personal property value of Elon Musk – Tesla CEO – reportedly reaching around $138.9 billion in just a few days. The situation seems to have no signs of stopping.

According to internal sources, the main reason given by the French government is due to concerns about technological safety, environmental impact and imbalance in bilateral trade. Tesla is accused of not complying with new regulations on the origin of components, while its  electric car models are also questioned on the emissions generated during production in factories in the United States and China. Although there was no official statement from the company, Elon Musk briefly shared on social networks that he was “closely monitoring the situation and would have appropriate feedback”.

This shock is not only affecting Tesla, but also leading to a sharp decline of the entire US auto industry in the European market. Even companies such as General Motors and Ford have begun to record canceled orders, stocks and European partners have suspended cooperation. Investors, who had previously placed great expectations on the wave of US electric cars to conquer the global market, who are now fleeing from stock codes related to this field, causing a wave of selling on Wall Street.

Some analysts believe that the French move is not only technical but also a political reaction in the context of trade tensions between Europe and the United States that are increasing the smoker. The European power to develop domestic brands such as Renault, Peugeot or Volkswagen makes Tesla’s strong presence in the region a “strategic threat”. A series of other European countries are expected to follow the French in the coming weeks, making Tesla’s future on the old continent more precarious than ever.Elon Musk, once a symbol of breakthroughs in technology and clean energy, now faces a vital challenge. The loss of nearly $140 billion is only a superficial manifestation of a deeper crisis of conviction, market share and global strategy. In the meantime, the world is waiting to see how Musk will turn things around or accept a volatile new chapter in his hard-working tech empire.