Tesla faces sales suspension over misleading Autopilot marketing
What's the story
An administrative law judge has ruled that Tesla misled customers with its marketing of Autopilot and Full Self-Driving (FSD) software. The decision comes from a case filed by the California Department of Motor Vehicles (DMV). The judge agreed with the DMV's request to suspend Tesla sales for 30 days as a penalty for its misleading marketing practices. However, the DMV has temporarily stayed the order and gave Tesla 60 days to clean up misleading language before suspending sales.
Safety assurance
DMV director emphasizes safety standards
Steve Gordon, the DMV director, stressed the importance of maintaining high safety standards for all vehicle manufacturers. He said, "Tesla can take simple steps to pause this decision and permanently resolve this issue - steps autonomous vehicle companies and other automakers have been able to achieve in California's nation-leading and supportive innovation marketplace."
Legal response
Tesla plans to appeal decision
Tesla has the option to appeal the ruling after the 60-day window, and the company has claimed it was a "consumer protection" order regarding the use of the term "Autopilot." The company argued that no customer had come forward with any issues related to this. Despite the ruling, Tesla maintains that sales in California will continue without interruption.
Ongoing investigations
Tesla's marketing practices under scrutiny
Tesla has been under investigation by the California Attorney General, Department of Justice, and Securities and Exchange Commission for allegedly misleading marketing of its partial autonomy systems. The company has also settled several personal civil lawsuits related to crashes involving its Autopilot technology. The DMV's case against Tesla has been ongoing for years, accusing the company of making customers believe its advanced driver assistance systems were highly autonomous.
Business implications
Potential impact on Tesla's business
A temporary suspension of sales in California could significantly affect Tesla's business, as it is the company's largest market in the US. A manufacturing suspension could also hurt Tesla's operations. Despite building a massive factory in Austin, Texas, and moving its official headquarters there, the company still relies on its Fremont, California factory to produce hundreds of thousands of vehicles each year.