Tesla Inc. is taking the California Department of Motor Vehicles (DMV) to court, disputing claims of false advertising regarding its Autopilot and Full-Self Driving (FSD) technologies. The lawsuit comes after Tesla dropped the “Autopilot” term from its marketing activities to avoid a potential 30-day license suspension in California.
Baseless Allegations
According to court filings, Tesla’s lawyers argue that the DMV wrongly and baselessly labeled the company a false advertiser. The DMV’s allegations stem from Tesla’s marketing of its driving assistance technologies, which the agency claims are misleading to consumers. However, Tesla’s lawyers contend that the DMV failed to provide evidence of consumer confusion and relied heavily on the testimony of a single law professor.
The DMV’s Case Against Tesla
The California DMV initially sued Tesla, seeking a 30-day suspension of the company’s sales and manufacturing operations in the state. The agency alleged that Tesla had misled consumers about the capabilities of its Autopilot and FSD systems. Although a court ruled in favor of the DMV, the suspension was ultimately avoided when Tesla was given a 90-day period to rectify its marketing practices.
Tesla’s FSD Technology
Meanwhile, Tesla’s Supervised FSD system has logged over 8.2 billion miles of driving, utilizing a vision-only approach. While the technology has shown promise, questions remain about its capabilities, particularly in light of recent reports of additional Robotaxi crashes in Austin.
Market Impact
The dispute between Tesla and the California DMV has had a significant impact on the company’s stock price. Tesla’s stock slid 2.91% to $399.83 at market close on Monday, before surging 0.19% to $400.57 during the overnight session.
Conclusion
The lawsuit between Tesla and the California DMV highlights the ongoing debate about the marketing and regulation of autonomous vehicle technologies. As the industry continues to evolve, companies like Tesla must navigate complex regulatory frameworks to bring their innovative products to market.