Judge Rules Tesla Misled Buyers on Self-Driving Tech
▼ Summary
– The California DMV warned Tesla it could face a 30-day sales license suspension in the state if it doesn’t correct deceptive marketing around its driver assist systems.
– The agency ruled that Tesla’s use of terms like “Autopilot” and “Full Self-Driving” is misleading and violates state law, giving the company a 60-day window to address the concerns.
– The DMV decided against suspending Tesla’s manufacturing license, avoiding a costly production shutdown during a period of falling EV demand.
– Compliance may force Tesla to rebrand its software, as the systems require constant driver attention and are not fully autonomous like robotaxi technology.
– Tesla has rejected the allegations of misleading customers, insisting it has always been clear that drivers must remain fully attentive.
A California judge has ruled that Tesla’s marketing of its driver-assistance technology is misleading, potentially jeopardizing the company’s ability to sell vehicles in its largest US market. The state’s Department of Motor Vehicles has formally adopted the ruling, warning that Tesla must correct its advertising practices or face a 30-day suspension of its license to sell cars in California. This decision underscores a significant regulatory challenge for the automaker, which has long promoted its Autopilot and Full Self-Driving (FSD) systems as cutting-edge advancements.
The DMV concluded that Tesla’s use of these specific product names violates state law because it creates a false impression about the vehicles’ capabilities. Unlike the truly autonomous systems developed by companies like Waymo, Tesla’s technology is an advanced driver-assist system that requires constant human supervision. The agency argues that the branding suggests a level of autonomy the cars simply do not possess, a claim Tesla has consistently denied. The company maintains that its communications have always emphasized the need for an attentive driver.
While the ruling carries serious consequences, the DMV opted not to follow the judge’s recommendation to suspend Tesla’s manufacturing license. This avoids a potentially devastating production halt during a period of declining electric vehicle demand and the expiration of key federal tax credits. The reprieve on manufacturing allows Tesla to continue building cars, but the threat to its sales operations in California, a critical market, remains very real.
Tesla now has a 60-day window to address the DMV’s concerns regarding the term “Autopilot.” Failure to comply will trigger the suspension of its dealer license. Compliance could force Tesla to undertake a major rebranding effort for its flagship software packages, moving away from the names that have become central to its brand identity and marketing. This legal action follows years of scrutiny from regulators and safety advocates who argue that Tesla’s terminology dangerously overpromises, potentially leading to driver complacency and accidents.
The automaker has defended its practices, insisting that its driver-assist features are described accurately and that customers understand the technology’s limitations. However, the administrative judge’s findings, now backed by the DMV, present a formidable obstacle. The outcome of this case could set a precedent for how advanced driver-assistance systems are marketed nationwide, influencing not only Tesla but the entire automotive industry’s approach to advertising emerging vehicle technologies.
(Source: The Verge)
