Tesla's ability to sell cars in California hangs in the balance after a weeklong 'high-stakes' court hearing
Briefly

The California DMV has filed a lawsuit against Tesla, accusing the company of misleading consumers about its "Full Self-Driving" and "Autopilot" technologies. The DMV seeks to suspend Tesla's car manufacturing and selling license for at least 30 days and award damages to consumers. During recent hearings, Tesla's legal team asserted that the company has not concealed the limitations of its technology. Meanwhile, Tesla faces declining sales and negative publicity, particularly related to CEO Elon Musk's prominence in a government initiative.
The DMV's 2022 lawsuit claims Tesla misled consumers about its "Full Self-Driving" and "Autopilot" technologies, suggesting they were more autonomous than they truly are.
In a pivotal court hearing, the DMV is seeking to suspend Tesla's ability to sell cars in California for at least 30 days due to false advertising concerns.
Tesla's legal representation stated that the company has always maintained that vehicles with Full Self-Driving capabilities cannot fully drive themselves and should not be fully relied upon.
Sales for Tesla have declined in early 2025, compounded by negative publicity related to CEO Elon Musk's high-profile government role.
Read at Business Insider
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