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Tesla Fights California DMV Over "Self-Driving" Claims
24 Feb
Summary
- Tesla is suing California's DMV to reverse a ruling on marketing terms.
- The DMV had previously threatened Tesla's sales license over ad language.
- Tesla alleges the DMV's order was baseless and unconstitutional.
Tesla has filed a lawsuit against the California Department of Motor Vehicles (DMV) on February 13, seeking to overturn a December ruling that deemed its use of "Autopilot" and "Full Self-Driving" terms misleading. The administrative law judge's decision had put Tesla's sales license at risk unless marketing language was revised. Last week, the DMV acknowledged Tesla's changes, including renaming the feature "Full Self-Driving (Supervised)," averting an immediate suspension.
The automaker contends the DMV "wrongfully and baselessly" accused it of false advertising, labeling the order "factually wrong" and "unconstitutional." Tesla argues the DMV failed to prove consumer confusion, noting that all vehicles include disclaimers about their limited autonomy. The company's future heavily relies on autonomous vehicle technology, with CEO Elon Musk having previously predicted a million robo-taxis on the road by 2020, a prediction that did not materialize.
Amidst a recent sales decline, particularly in Europe, Tesla is reportedly pinning hopes on its Cybercab for a potential resurgence. The company is actively testing automated vehicles in Austin, Texas, as part of its Robotaxi initiative. This legal battle follows another setback last week, where Tesla lost an appeal in a $243 million lawsuit stemming from a 2019 crash, also related to its marketing of "Autopilot" and "Full Self-Driving" features. Last month, Tesla also made its "Full Self-Driving (Supervised)" tier subscription-only for new Model 3 and Y vehicles.
