Tesla's Autopilot false advertising tussle with California DMV must go to trial
At stake: Carmaker's licenses to make and sell motor vehicles in golden state
A California judge has rejected Tesla's bid to dismiss claims that the self-driving capabilities of its vehicles were overstated.
Two complaints against the company were filed by the California Department of Motor Vehicles (DMV) in 2022, alleging that Tesla violated state law by claiming that its vehicles could drive autonomously.
If successful in its complaints, the DMV could "revoke or suspend respondent's licenses to manufacture and sell motor vehicles in California on the ground that respondent unlawfully has used false, misleading phrases and feature names to market such vehicles."
Tesla earlier filed a motion trying to get an order dismissing the first set of amended accusations without an evidentiary hearing, claiming there was enough documentary evidence for a ruling. In its argument, it conceded the judge would not be able to "order the Department directly to dismiss this matter," as this would exceed formal hearing provisions in the California Administrative Procedure Act, but asked that the judge and the department use their "discretion to review these questions now, and to resolve them if possible without extensive but ultimately unnecessary litigation."
But Judge Juliet Cox of the golden state's Office of Administrative Hearings (OAH) was not convinced and said in Monday's order that she would not terminate the proceeding prematurely before the DMV had a chance "to develop evidence and present it at the hearing."
The judge noted, specifically, that the accusations by California's Department of Motor Vehicles "would, if true, support an enforcement action against Tesla."
Tesla did not immediately respond to a request for comment on the matter.
The company and its CEO have a long history of making specific boasts about what the vehicles can do with regard to autonomous driving. In May, a separate lawsuit was given the green light to proceed after disgruntled owners complained that promises a Tesla car would be able to drive itself from Los Angeles to New York failed to materialize.
The lawsuit stated the claims become ever more specific, alleging the company's boss, Elon Musk, said in 2017 that it would be possible for Tesla owners to sleep while their cars drove.
While sleeping at the wheel is possible – if not recommended – in most moving vehicles, Tesla makes it clear on its website that a fully attentive driver, prepared to take over at any moment, is required for Autopilot and the Full Self-Driving capabilities of its vehicles.
However, old habits die hard, and the company also noted: "These features are designed to become more capable over time."
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If the accusations are proven, several remedies are available, including compensating Tesla owners and prohibiting the sale of the vehicles in California.
Autopilot is proving to be a headache for Tesla. An investigation into the technology's safety risks resulted in a recall of more than two million vehicles at the end of 2023.
In 2024, the US National Highway Traffic Safety Administration (NHTSA) opened a recall query to investigate the effectiveness of Tesla's remedy after the incidents continued. ®