Tesla May Lose Its License to Sell Cars in California

Tesla in California: Court Proceedings Over Marketing of Autonomous Systems

Tesla is preparing for a five-day hearing in California over accusations of misleading consumers about the capabilities of its Autopilot and Full Self-Driving systems. The state’s Department of Motor Vehicles (DMV) claims that Tesla’s marketing materials create a false impression of the full autonomy of its vehicles.

The outcome of the hearing could have serious consequences for Tesla’s business in California, as the regulator is considering the suspension or revocation of the company’s license to sell vehicles in the state.

Legal Risks and Future Plans

The case dates back to July 2022, when the DMV first accused Tesla of overstating the capabilities of its systems. At the same time, the company is trying to obtain permission to expand its robotaxi program in San Francisco, which would put it in direct competition with Waymo.

“The term ‘autopilot’ creates unrealistic expectations because in aviation this technology is much more reliable,” expert Mary Cummings stated during a separate court proceeding in Florida.

Concurrently, a trial is ongoing in Miami regarding a fatal 2019 accident involving a Tesla on Autopilot. This case raises questions about safety and driver responsibility when using semi-autonomous systems.

Despite the legal troubles, Tesla continues to insist that its claims about autonomy refer to future technologies, and that current systems require constant monitoring by the driver. The success or failure of the California case could significantly impact not only the company’s sales in the state but also its reputation as an innovator in the field of autonomous driving. Potential restrictions in California, which is a key market for electric vehicles, could set a precedent for similar investigations in other states.

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