WionDrive News Desk 
Tesla, the electric vehicle giant led by Elon Musk, has been embroiled in a legal battle with California’s Department of Motor Vehicles (DMV) over allegations of false marketing concerning its Autopilot and Full Self-Driving (FSD) technologies. The DMV had accused Tesla of misleading consumers by claiming that these features enabled autonomous driving capabilities, which the vehicles did not possess at the time of advertising.
In a recent ruling, Judge Juliet Cox of the state Office of Administrative Hearings (OAH) rejected Tesla’s attempt to dismiss the claims made by the DMV. The judge stated that if the accusations were proven true, they would support an enforcement action against the automaker. The DMV had sought remedies that could potentially include suspending Tesla’s licence to sell vehicles in California and requiring the company to provide restitution to vehicle owners.
The decision comes amid heightened scrutiny over Tesla’s self-driving technology from both state and federal authorities. In a separate case, a federal judge in San Francisco recently denied Tesla’s bid to dismiss a proposed nationwide class-action lawsuit alleging that the company misled consumers about the autonomous driving capabilities of its vehicles.
Additionally, federal prosecutors are investigating whether Tesla committed fraud by misleading investors regarding its self-driving technology’s capabilities. The company has maintained that while Autopilot and FSD allow vehicles to steer, accelerate, brake, and obey traffic signals, they do not make the vehicles fully autonomous, and drivers must remain attentive.
The DMV’s claims against Tesla will undergo a formal review before the OAH on September 9. California, being Tesla’s largest U.S. market and accounting for approximately 10% of global deliveries, is a crucial battleground for the company. However, Tesla’s electric vehicle market share in the state has declined in recent quarters, dropping from 61.8% in the first quarter of 2022 to 55.4% in the same period of 2023.
As the legal proceedings unfold, Tesla faces significant challenges in navigating the complex regulatory landscape surrounding its self-driving technology claims. The outcome of these cases could have far-reaching implications for the company’s marketing strategies, consumer trust, and overall business operations in California and potentially nationwide.
