Tesla engaged in deceptive marketing for Autopilot and Full Self-Driving, judge rules

California Judge Rules Tesla Engaged in Deceptive Autopilot Marketing

An administrative law judge has ruled that Tesla engaged in deceptive marketing that misled customers about the capabilities of its Autopilot and Full Self-Driving driver assistance software. This ruling is a significant development in a case initiated by California’s Department of Motor Vehicles that has been ongoing for years.

The judge sided with the state DMV’s request to suspend Tesla sales for 30 days as a penalty for its deceptive actions. However, the DMV has decided to stay the order and is giving Tesla a 90-day grace period to modify or remove any misleading language before the suspension is implemented.

While the judge recommended suspending Tesla’s manufacturing license for 30 days as well, the DMV has also stayed that order. It remains to be seen what criteria the DMV will use to determine Tesla’s compliance with the ruling.

Tesla has been under scrutiny from various regulatory bodies, including the California Attorney General, the Department of Justice, and the Securities and Exchange Commission, over allegations of misleading marketing regarding its partial autonomy systems. The company has also settled multiple civil lawsuits related to crashes involving its Autopilot technology.

The case brought by the CA DMV accuses Tesla of leading customers to believe that its driver assistance systems were more capable than they actually were, resulting in overconfidence and contributing to numerous accidents and fatalities. Tesla has defended its marketing as protected speech.

A temporary shutdown of sales in California could have a significant impact on Tesla’s operations, as the state is its largest market in the US. Additionally, a manufacturing suspension could disrupt Tesla’s production, as it still relies on its Fremont factory to produce a large number of vehicles, including the Model 3 sedans.

At the same time as these legal challenges, Tesla is pushing forward with testing its Robotaxi service in Austin. The company recently removed safety monitors from its fleet in the city, which had been offering rides to customers for the past six months with a safety monitor present. CEO Elon Musk has indicated that these vehicles are running a different version of Tesla’s driving software than what is available to customers.