The California Department of Motor Vehicles (DMV) has confirmed that Tesla has avoided a suspension of its license to manufacture and sell vehicles in the state. This comes after the automaker dropped the “Autopilot” term from its marketing activities for its Advanced Driver Assistance Systems (ADAS).
Background
The DMV had previously filed a lawsuit against Tesla, seeking a 30-day suspension of the company’s sales and manufacturing activities in the state. The agency alleged that Tesla had misled consumers about the capabilities of its Autopilot and Full Self-Driving systems. However, the court ruled in the DMV’s favor and gave Tesla 90 days to adopt the necessary changes.
DMV Response
DMV Director Steve Gordon has hailed the decision, saying that “The department is pleased that Tesla took the required action” to remain in compliance with California’s consumer protection laws. By dropping the “Autopilot” term, Tesla has avoided having its dealer and manufacturer licenses suspended by the DMV for 30 days.
Recent Incidents
Tesla has also come under fire after reporting additional crashes of its Robotaxis in Austin, taking the total reported incidents involving its cabs to 14. Investor Ross Gerber of Gerber Kawasaki has raised questions about the FSD system, suggesting that the company may need to make hardware adjustments.
FSD System Concerns
A Tesla owner has flagged multiple instances of the company’s FSD system driving onto a boat ramp on a lake, almost driving into the lake before the owner intervened. The owner shared video footage of the incidents, which has sparked concerns about the capabilities of the system.
Stock Performance
Tesla’s stock slid 1.63% to $410.63 at market close on Tuesday, dropping 0.36% further to $409.15 during the after-hours session. Despite this, Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term.