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California Judge Rules Tesla Misled Consumers on Autopilot, Orders 90-Day Fix or Sales Suspension

A California judge has ruled that Tesla misled consumers about the capabilities of its driver assistance systems, according to a decision issued by Administrative Judge Juliet E. Cox. The ruling, delivered on November 21, found that Tesla’s marketing and naming of its "Full Self-Driving" (FSD) and "Autopilot" features created a false impression that the vehicles could operate autonomously, when in fact they cannot. The decision, which has been sent to the California Department of Motor Vehicles (DMV) for final consideration, recommends that Tesla’s license to sell vehicles in the state be suspended for at least 30 days. However, the DMV has decided not to pursue a suspension of Tesla’s manufacturing license. Instead, it has imposed a 90-day stay on the sales suspension, giving the company time to revise its advertising language. The case stems from a 2022 lawsuit filed by the DMV, which accused Tesla of deceptive marketing. The agency argued that Tesla’s website and promotional materials repeatedly suggested that FSD could handle long and short trips without any driver input, despite the system’s limitations. The DMV’s complaint cited specific examples from 2021 and 2022, including claims that FSD was "designed to be able to conduct short and long-distance trips with no action required by the person in the driver's seat." Tesla’s legal team strongly contested these claims during a weeklong hearing in July at an administrative court in Oakland. Attorney Matthew Benedetto, representing the company, emphasized that Tesla has consistently informed customers that FSD and Autopilot are not fully autonomous. “Cars with Full Self-Driving capabilities are currently not capable of driving themselves,” Benedetto stated during the hearing. Despite this, the judge’s proposed decision concluded that Tesla’s advertising language was misleading and contributed to consumer misunderstanding about the technology’s actual capabilities. The DMV has not yet released the full decision, which is expected to be made public on December 22. The outcome could have significant implications for how automakers market driver assistance features, especially as the use of such systems grows. The DMV is also seeking to award monetary damages to affected consumers, though the final determination on that remains pending. Tesla has not issued a public statement in response to the ruling. The case is still unfolding, and further developments are expected in the coming weeks.

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