A California Ruling Challenges Tesla on Autonomous Vehicle Advertising

Tesla is under a strict deadline to alter the way it markets its vehicles' self-driving capabilities. The company has 90 days to change its promotional language, or it risks a 30-day halt in sales within California. This was revealed by the Director of the California DMV, Steve Gordon, during a media briefing.

On November 21, Administrative Judge Juliet E. Cox reached a tentative decision regarding accusations against Tesla. This decision involves claims that Tesla has not been transparent with consumers about the self-driving abilities of its cars. The proposal has been handed over to the DMV but is not available to the public until December 22.

In the briefing, Gordon stated that Judge Cox suggested suspending Tesla's authorization to both sell and manufacture cars within California. Nevertheless, the DMV decided to temporarily postpone the suspension of their sales license, allowing a 90-day period for Tesla to address the advertising issues.

This notification follows a July weeklong hearing in Oakland. It was in 2022 that the Department of Motor Vehicles initiated legal action against Tesla. The complaint centered on the argument that the company's advertisements misled the public by using terms like "Full Self-Driving" and "Autopilot" for features that don't allow the cars to drive unassisted.

Tesla's legal representatives refuted the claims, arguing that the company has not misled buyers into believing their vehicles can autonomously drive without human intervention.

The DMV's lawsuit sought to impose a minimum 30-day sales suspension on Tesla and potentially award financial compensation to consumers.

The department's complaint noted multiple instances during 2021 and 2022 where Tesla's website suggested its driver assistance technology was equipped to manage trips without requiring the driver's involvement.

At the hearing, Tesla's legal team insisted that customers were always informed that full reliance on Full Self-Driving or Autopilot was not advisable.

"Our vehicles with Full Self-Driving features cannot completely operate on their own," stated Matthew Benedetto, part of Tesla's legal counsel.

Tesla has yet to issue a comment in response to these developments.