A recent fire at a Tesla Inc. dealership in Pennes-Mirabeau, a town near Marseille, France, resulted in the destruction of 24 electric vehicles. Investigators are probing the incident, with early findings suggesting potential arson due to a security fence breach. This event casts a shadow on Tesla's operations in France, where the company has seen a significant increase in sales, contrasting with a broader decline in its European market performance.
The blaze, which occurred in the early hours of Thursday, necessitated the deployment of approximately 50 firefighters to the dealership's parking lot. Despite their rapid response, a substantial number of Tesla vehicles were consumed by the flames. Fortunately, no injuries were reported as a result of the incident. Law enforcement officials initiated a preliminary inquiry, uncovering a cut in the perimeter fence, which has led them to believe that the fire may have been intentionally set. Tesla has indicated that it will be conducting its own internal investigation into the matter.
This destructive incident unfolds against a backdrop of mixed fortunes for Tesla in the European market. While the company celebrated an 83% year-over-year increase in sales in France during October 2025, largely attributed to government incentives promoting electric vehicle adoption, its overall European sales have experienced a downturn. In September, Tesla's sales across Europe fell by 10.5% compared to the previous year, even though its Model Y remained the top-selling car in the region. The company sold 39,837 units in September, bringing its year-to-date sales to 173,694 units, marking a 29% decrease from the prior year.
The financial markets reacted to the news, with Tesla stock closing down by 6.6% in regular trading, valued at $401.99 per share, and a further slight decline of 0.4% in after-hours trading to $400.40. This incident adds a layer of complexity to Tesla's strategic efforts to bolster its market presence and navigate the competitive landscape of the electric vehicle industry in Europe.
The fire at the French showroom, now under investigation for suspected arson, presents a challenge for Tesla as it seeks to maintain its growth trajectory amidst fluctuating European sales figures. The company's commitment to an internal review underscores the seriousness with which it is approaching this unfortunate event, while also focusing on its ongoing efforts to capitalize on strong performance in specific regional markets like France.