Asger Risom
A California judge has delivered a major blow to Tesla’s long-running claims about self-driving technology.
A California judge has delivered a major blow to Tesla’s long-running claims about self-driving technology. Regulators now say the company must change how it markets one of its best-known features or risk losing the right to sell cars in its largest US market.
The ruling sharpens scrutiny on how far driver-assistance systems can be sold as autonomy.
Court decision
A California administrative law judge ruled that Tesla misled consumers about the capabilities of its vehicles, according to reporting by Business Insider. The case centers on the carmaker’s use of the terms “Autopilot” and “Full Self-Driving” in advertising and product descriptions.
Steve Gordon, director of the California Department of Motor Vehicles, said the agency has given Tesla 90 days to amend its language. If the company fails to comply, it faces a 30-day suspension from selling vehicles in California.
Name under fire
Gordon said the DMV is specifically demanding that Tesla rename “Autopilot” to better reflect that the system is an advanced driver-assistance feature, not an autonomous one. “Changes must be made within 90 days,” he said, or the DMV will “enforce the cessation of sales.”
He added that compliance would be the simplest path forward. “The easiest one for them is just to come into compliance,” Gordon said.
Tesla responds
Tesla pushed back against the decision. A spokesperson told Business Insider that the order was “a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
“Sales in California will continue uninterrupted,” the spokesperson added.
Tesla has consistently argued that it has never claimed its vehicles are fully autonomous and that customers are informed they must remain attentive while using its systems.
Judge’s recommendation
Administrative Judge Juliet E. Cox issued a proposed decision on November 21, concluding that Tesla’s marketing could mislead consumers into overestimating the technology’s capabilities. While the proposal itself remains sealed until December 22, Gordon said Cox recommended suspending both Tesla’s license to sell and manufacture vehicles in California.
The DMV ultimately chose a narrower approach, pausing any sales suspension for 90 days and declining to halt manufacturing. Gordon said Tesla’s economic importance to the state factored into the decision.
Long-running dispute
The case stems from a lawsuit filed by the DMV in 2022, accusing Tesla of overstating what its driver-assistance systems can do. Regulators cited website language claiming vehicles were “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 lawyers countered during hearings that the company has always disclosed limits. “Cars with Full Self-Driving capabilities are currently not capable of driving themselves,” attorney Matthew Benedetto said.
A California judge has delivered a major blow to Tesla’s long-running claims about self-driving technology. Regulators now say the company must change how it markets one of its best-known features or risk losing the right to sell cars in its largest US market.
The ruling sharpens scrutiny on how far driver-assistance systems can be sold as autonomy.
Court decision
A California administrative law judge ruled that Tesla misled consumers about the capabilities of its vehicles, according to reporting by Business Insider. The case centers on the carmaker’s use of the terms “Autopilot” and “Full Self-Driving” in advertising and product descriptions.
Steve Gordon, director of the California Department of Motor Vehicles, said the agency has given Tesla 90 days to amend its language. If the company fails to comply, it faces a 30-day suspension from selling vehicles in California.
Name under fire
Gordon said the DMV is specifically demanding that Tesla rename “Autopilot” to better reflect that the system is an advanced driver-assistance feature, not an autonomous one. “Changes must be made within 90 days,” he said, or the DMV will “enforce the cessation of sales.”
He added that compliance would be the simplest path forward. “The easiest one for them is just to come into compliance,” Gordon said.
Tesla responds
Tesla pushed back against the decision. A spokesperson told Business Insider that the order was “a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
“Sales in California will continue uninterrupted,” the spokesperson added.
Tesla has consistently argued that it has never claimed its vehicles are fully autonomous and that customers are informed they must remain attentive while using its systems.
Judge’s recommendation
Administrative Judge Juliet E. Cox issued a proposed decision on November 21, concluding that Tesla’s marketing could mislead consumers into overestimating the technology’s capabilities. While the proposal itself remains sealed until December 22, Gordon said Cox recommended suspending both Tesla’s license to sell and manufacture vehicles in California.
The DMV ultimately chose a narrower approach, pausing any sales suspension for 90 days and declining to halt manufacturing. Gordon said Tesla’s economic importance to the state factored into the decision.
Long-running dispute
The case stems from a lawsuit filed by the DMV in 2022, accusing Tesla of overstating what its driver-assistance systems can do. Regulators cited website language claiming vehicles were “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 lawyers countered during hearings that the company has always disclosed limits. “Cars with Full Self-Driving capabilities are currently not capable of driving themselves,” attorney Matthew Benedetto said.
A California judge has delivered a major blow to Tesla’s long-running claims about self-driving technology. Regulators now say the company must change how it markets one of its best-known features or risk losing the right to sell cars in its largest US market.
The ruling sharpens scrutiny on how far driver-assistance systems can be sold as autonomy.
Court decision
A California administrative law judge ruled that Tesla misled consumers about the capabilities of its vehicles, according to reporting by Business Insider. The case centers on the carmaker’s use of the terms “Autopilot” and “Full Self-Driving” in advertising and product descriptions.
Steve Gordon, director of the California Department of Motor Vehicles, said the agency has given Tesla 90 days to amend its language. If the company fails to comply, it faces a 30-day suspension from selling vehicles in California.
Name under fire
Gordon said the DMV is specifically demanding that Tesla rename “Autopilot” to better reflect that the system is an advanced driver-assistance feature, not an autonomous one. “Changes must be made within 90 days,” he said, or the DMV will “enforce the cessation of sales.”
He added that compliance would be the simplest path forward. “The easiest one for them is just to come into compliance,” Gordon said.
Tesla responds
Tesla pushed back against the decision. A spokesperson told Business Insider that the order was “a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
“Sales in California will continue uninterrupted,” the spokesperson added.
Tesla has consistently argued that it has never claimed its vehicles are fully autonomous and that customers are informed they must remain attentive while using its systems.
Judge’s recommendation
Administrative Judge Juliet E. Cox issued a proposed decision on November 21, concluding that Tesla’s marketing could mislead consumers into overestimating the technology’s capabilities. While the proposal itself remains sealed until December 22, Gordon said Cox recommended suspending both Tesla’s license to sell and manufacture vehicles in California.
The DMV ultimately chose a narrower approach, pausing any sales suspension for 90 days and declining to halt manufacturing. Gordon said Tesla’s economic importance to the state factored into the decision.
Long-running dispute
The case stems from a lawsuit filed by the DMV in 2022, accusing Tesla of overstating what its driver-assistance systems can do. Regulators cited website language claiming vehicles were “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 lawyers countered during hearings that the company has always disclosed limits. “Cars with Full Self-Driving capabilities are currently not capable of driving themselves,” attorney Matthew Benedetto said.
Sources: California DMV, Business Insider
