The e-car maker Tesla threatens a ban on sales and production in California. The reason: an official lawsuit for misleading advertising around Tesla’s autopilot and FSD systems.
• Lawsuit of the Department of Motor Vehicles against Tesla
• Promise to autopilot and FSD misleading
• Sales stop in California would come at an unfavorable time
California is about to prohibit Tesla for at least 30 days to prohibit the sale and manufacture of vehicles in the state. The background is a lawsuit by the Department of Motor Vehicles (DMV) against Tesla due to false advertising promises. Tesla would arouse false expectations through terms such as “autopilot” or “full self-driving”, which, according to DMV, violates California consumer protection laws.
This is behind the lawsuit against Tesla
As “Newsweek” reports, the California Department of Motor Vehicles (DMV) had already filed a lawsuit for the first time in 2022 after Tesla used aggressive advertising shape for its “Autopilot” and “Full Self-Driving (FSD) Full Self-Driving. These gave the impression that the Tesla electric cars could drive autonomously and without an intervention by a person. According to the news portal in the jurisdiction, the California prosecutors, for example, lead as examples of these statements. [ist]that it can do short and long-distance trips without the person in the driver’s seat “and you just have to tell the car where to go.” If you don’t say anything, your car looks at your calendar and brings you to the accepted destination. Your Tesla finds the optimal route and navigates through city roads, complex intersections and highways. […] When you have reached your destination, simply get out at the entrance and your car changes to parking search mode, automatically searches for a parking space and parks independently, “also quotes” Electrek “statements from the group under the direction of Elon Muskthat are listed in the court documents.
“These names and descriptions expressly represent that the defendant’s vehicles [Tesla] as autonomous vehicles will work, which they could not and cannot, “said Attorney General Rob Bonta, according to” Newsweek “in a statement on the lawsuit.
Tesla, on the other hand, claims, according to “Elctrek”, that the drivers refer to the fact that they should always be attentive, all warnings are documented accordingly – for example in the manuals – and the buyers are intelligent enough to understand the actual limits of technology. According to the electric car maker, this is sufficient to counteract possible misleading statements. At the same time, according to the news portal, Tesla also argued that the company had now been allowed to lie via FSD for so long that it should now also be permitted to continue.
As part of a hearing several days, the DMV’s application is now being examined to remove Tesla’s manufacturer and dealer license in California for at least 30 days and to check a reimbursement obligation.
California as an important sales market for Tesla
According to the “Electrek”, California is responsible for Tesla’s largest sales market within the United States and for around a third of EV sales in the country. According to “Newsweek”, this is primarily due to the market in San Francisco, which is strongly geared towards electric cars and new technologies. A sales lock in California could therefore have significant operational and financial effects for Tesla – and at a time at which the company’s vehicle’s vehicle is weakened anyway. According to “Reuters”, the number of new Teslas in California also broke down by a good 21 percent in the second quarter.
In addition, there is also the fact that US funding for electric cars expire at the beginning of the fourth quarter of 2025, so that part of the demand should be relocated to the third quarter. A 30-act sales stop in California would therefore come for Tesla at a very unfavorable time.
Editor finance.net
By the way: Tesla and other US shares are even tradable at Finance.net Zero until 11 p.m. (without order fees, plus spreads). Open Depot now for free And receive a free stock as a gift.
Selected leverage products on Tesla
With knock-outs, speculative investors can participate disproportionately in price movements. Simply choose the desired lever and we will show you suitable open-end products on Tesla
The lever must be between 2 and 20
Advertising