Tesla avoids 30-day California sales suspension

Tesla has avoided a potential 30-day sales suspension in California after the Department of Motor Vehicles (DMV) said it has come into compliance with ad rules for its automated-driving features.

The DMV announced that Tesla took “corrective action” to address allegations that the company exaggerated the capabilities of its Autopilot and Full Self-Driving (FSD) systems.

In December, Tesla was given 90 days to align its marketing practices following a ruling from an administrative judge.

The company discontinued its Autopilot product in January and has been emphasizing the term Full Self-Driving (Supervised) to describe its driver assistance system, which is not fully autonomous and requires constant supervision.

Tesla did not immediately comment on the development.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Tesla complied after an administrative law judge found deceptive marketing

An administrative law judge said Tesla’s “Full Self-Driving” language misled buyers, since “Full Self-Driving Capability” could sound like the car drives safely without a human driver’s constant, undivided attention 1.
The ruling followed a California Department of Motor Vehicles (DMV) investigation into Tesla’s marketing that started in 2021 2.

The ruling raises legal risk for Tesla and puts pressure on the auto industry

The finding could strengthen a pending class-action lawsuit from drivers who say Tesla misled them for years about its cars’ driver-assistance capabilities 1.
A possible sales suspension suggests regulators are taking a harder look at how automakers describe driver-assistance features 1.
Mercedes-Benz markets “Drive Pilot” as a limited SAE Level 3 system, a classification that allows the car to handle driving in specific conditions while the human is not required to continuously monitor. The California action may reinforce more careful naming and clearer disclosures around automation features 3.