Tesla engaged in deceptive marketing of its self-driving and full self-driving systems, a judge ruled

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📂 Category: Transportation,autonomous vehicles,avs,Elon Musk,full self-driving,Tesla,Tesla Autopilot

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An administrative law judge has ruled that Tesla engaged in deceptive marketing that gave customers a false impression of its Autopilot’s driver assistance software and full self-driving capabilities, a pivotal development in a years-long case initiated by California’s Department of Motor Vehicles.

A judge granted the state DMV’s request to suspend Tesla sales for 30 days as punishment for its actions, but the DMV stayed the order and is giving Tesla 90 days to amend or remove any deceptive language before implementing the suspension, according to multiple outlets. The judge also recommended that Tesla’s manufacturing license be suspended for 30 days, but the DMV kept that in place as well, according to Bloomberg News.

It is not immediately clear what threshold the CA DMV is considering for Tesla to comply with the ruling. If Tesla complies, the suspension will be dropped. The DMV did not immediately respond to a request for comment. Tesla no longer has a public relations department.

Tesla has faced multiple investigations from the California Attorney General, the Department of Justice, and the Securities and Exchange Commission over similar allegations that its marketing about partial autonomy systems was misleading. The company also faced (and has now settled) a number of personal civil lawsuits over incidents involving its Autopilot technology.

The case brought by the CA DMV has been winding through the state’s Office of Administrative Hearings for years. The agency essentially accused Tesla of making customers believe that its advanced driver assistance systems were capable of achieving high levels of autonomy. The DMV claimed this led to overconfidence in the systems, which contributed to dozens of accidents and multiple deaths. Tesla refuted these claims by saying that its marketing was protected speech.

Stopping sales in California, even temporarily, could have a significant impact on Tesla’s business, as it remains the company’s largest market in the United States. A manufacturing suspension could also hurt Tesla’s business. While the company has built a massive factory in Austin, Texas (and moved its official headquarters to the same location), it still relies on the Fremont, California plant to manufacture hundreds of thousands of vehicles, including all Model 3 sedans destined for North America.

The judge’s decision comes as Tesla develops a test of its Robotaxi service in Austin. Over the weekend, the company removed safety monitoring devices from its small fleet in the city. It has been offering rides to customers in the city for the past six months, but with a safety screen in either the driver or passenger seat. These vehicles run a different version of Tesla’s driving software than the automaker’s customers have in their cars, CEO Elon Musk said.

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