Authored by Kimberly Hayek via The Epoch Times (emphasis ours)
California’s Department of Motor Vehicles (DMV) has decided to temporarily halt the suspension of Tesla’s car sales in the state, giving the electric vehicle manufacturer more time to address allegations of deceptive advertising and exaggerated self-driving capabilities.
DMV Director Steve Gordon revealed to the press on Tuesday that the department had agreed to a 30-day suspension of Tesla’s manufacturing and sales licenses based on a judge’s recommendation, but decided to put these measures on hold.
This hold applies to sales for 90 days and indefinitely to manufacturing, allowing Tesla a chance to rectify the situation. Gordon expressed hope that Tesla will take steps to correct any misleading information.
Tesla has the option to challenge the order within the department or through legal channels, Gordon explained.
The DMV initially filed complaints in 2022, accusing Tesla of making false or misleading claims regarding its Autopilot and Full Self-Driving (FSD) features. The agency contended that Tesla’s branding implied the vehicles could operate autonomously, violating state advertising regulations. A spokesperson for the DMV at the time suggested that corrective action might involve better educating consumers about feature limitations and providing clear warnings.
In a 2024 ruling, a judge rejected Tesla’s attempt to dismiss the lawsuit, agreeing with the state’s argument that even with disclaimers, misleading terminology could unlawfully attract customers. The DMV argued that Tesla’s language could mislead people into thinking the vehicles were autonomous despite requiring active supervision.
During a hearing, a Tesla lawyer stated that the company had consistently clarified that vehicles with Autopilot and FSD software needed driver supervision and were not autonomous.
“Tesla has never misled consumers. Never. And not even close,” the lawyer emphasized.
Tesla is currently experiencing a decline in demand for its electric vehicles following the expiration of crucial tax credits. CEO Elon Musk has shifted the company’s focus to robotaxis utilizing an unsupervised FSD version and humanoid robots.
While Autopilot aids with highway tasks like acceleration, braking, and lane-keeping, FSD allows for lane changes, compliance with traffic signals, and city driving—all under supervision. Tesla uses “supervised” FSD in consumer vehicles and “unsupervised” versions in factory operations and a monitored robotaxi service in Austin.
The DMV’s position aligns with broader scrutiny. In 2022, drivers filed a class-action lawsuit in a San Francisco federal court alleging false claims about Autopilot and FSD and seeking compensation for buyers since 2016, following the DMV’s initial complaints.
The company successfully defended itself in 2023 in a trial related to a fatal crash involving Autopilot, with jurors determining that sufficient driver warnings had been provided. In a separate 2024 ruling, fraud allegations against Musk and other officials were dismissed, concluding that statements such as Autopilot being safer than average drivers were not deceptive.
Moreover, a 2023 recall of 362,000 vehicles addressed FSD software glitches that posed risks of crashes at intersections, underscoring ongoing safety concerns. Federal investigations by the Justice Department and National Highway Traffic Safety Administration continue into Autopilot and range claims.
The automaker did not provide immediate comments on the recent developments.
Reuters contributed to this report
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