Sacramento, California – The California Department of Motor Vehicles is moving to suspend Tesla’s ability to sell and manufacture vehicles in the state, escalating a long-running legal dispute over how the company markets its semi-autonomous driving features.
The DMV first filed its complaint in 2022, later amending it in 2023. At the heart of the case is the state’s contention that Tesla has misled consumers by advertising its “Autopilot” and “Full Self-Driving” (FSD) systems in ways that suggest a level of autonomy that doesn’t exist. California officials argue that the language used on Tesla’s website and in promotional materials exaggerates the vehicles’ capabilities, amounting to false advertising.
Phrases such as “full self-driving capability” and promises that a Tesla can handle trips “with no action required by the person in the driver’s seat” were highlighted in court filings. One example provided by the Department of Justice claims the company described scenarios in which a Tesla could navigate urban streets, select destinations based on calendar entries, park itself, and return to the driver—all without human input…