Key Points
- California may suspend Tesla’s license to sell cars for 30 days.
- A judge ruled that Tesla’s use of the terms “Autopilot” and “Full Self-Driving” is deceptive.
- Critics argue the names overstate the technology’s capabilities and create safety risks.
- Tesla has 90 days to change its marketing to more clearly explain the system’s limits.
California regulators are threatening to hit the brakes on Tesla’s sales in the state. An administrative law judge has concluded that the automaker has been misleading consumers for years about the capabilities of its “Autopilot” and “Full Self-Driving” features, prompting the state to consider a 30-day sales suspension.
The ruling, released Tuesday, found that Tesla’s marketing tactics were deceptive. While the company’s self-driving technology is advanced, it still requires a human driver to be alert and ready to take control at a moment’s notice.
Critics, and now a California judge, argue that the names “Autopilot” and “Full Self-Driving” dangerously overstate what the cars can actually do.
Tesla has been given a 90-day window to make changes to its marketing to avoid the suspension. “Tesla can take simple steps to pause this decision and permanently resolve this issue,” said Steve Gordon, director of the California Department of Motor Vehicles.
This isn’t the first time Tesla has faced criticism for its self-driving claims. The company has been hit with numerous lawsuits alleging its marketing has lulled drivers into a false sense of security, leading to tragic and sometimes fatal accidents.
The news comes as Tesla is already facing a global sales slump and intensifying competition. Despite these challenges, the company’s stock price hit an all-time high this week. This reflects a growing belief among investors that Tesla’s future is not just in selling cars, but in becoming a dominant force in AI and robotics, with a fleet of self-driving robotaxis at the center of its vision.
