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Tesla Accused of "False Advertising" By the California DMV Concerning Autopilot Feature


August 08, 2022

Investors have recently been hyper-focused on Tesla's upcoming 3-for-1 stock split. However, there are two different news reports concerning Tesla that could have a substantial impact on Tesla investors.

The California Department of Motor Vehicles has accused Tesla of misleading its customers "with advertising language on its website describing its Autopilot and Full Self-Driving technologies as more capable than they actually are," an article posted in the LA Times reported. 

The LA Times article states that one of the potential consequences for Tesla could include a "revocation of the company's licenses to make or sell its cars in California." However, it has also been reported that a less intense consequence is more conceivable. 

Last Friday, the California Department of Motor Vehicles reported that it is seeking a remedy that includes making Tesla required to educate its Tesla drivers about the actual capabilities of its " Full Self-Driving" and " Autopilot"  features. The cautionary warnings would include the limitations of the features and associated violations.

Last weekend it was also reported that the National Highway Traffic Safety Administration was investigating two Tesa accidents involving motorcycles that might have involved Tesla's on Autopilot. Both riders involved in the motorcycle accidents, which were identical in the circumstances, were tragically killed. Both motorcycle/Tesla accidents occurred at night, with at least one Tesla on Autopilot following behind the motorcycles. The National Highway Traffic Safety Administration is now suspicious that "Tesla's partially automated driver-assist system was in use" during the crashes. 

These Tesla accident investigations add more scrutiny to Tesla's flagship vehicle selling point by federal regulators. Any negative impact on Tesla's Autopilot feature, including recalls, may have deep financial consequences for Tesla. 

Did you or a loved one suffer injuries in a Tesla accident? Protect your legal rights by calling Montlick Injury Attorneys Nationwide, 24/7, at 1-800-LAW-NEED (1-800-529-6333). Our Tesla Defect Lawyers are here to listen, understand your situation, and advise you. 

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Sources:

https://www.zerohedge.com/markets/california-dmv-accuses-tesla-false-advertising-and-misleading-claims-about-autopilot

https://www.latimes.com/business/story/2022-08-05/dmv-false-advertising-tesla

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