California Regulators Threaten Tesla Sales Suspension Over Misleading Marketing Practices
California regulators are threatening to suspend Tesla's license to sell electric cars in the state unless the company tones down its marketing tactics for its self-driving features. This comes after a judge concluded that Tesla has been misleading consumers about the technology's capabilities, using terms like 'Autopilot' and 'Full Self-Driving' to promote its autonomous technology.
The potential 30-day blackout of Tesla's sales in California is the primary punishment being recommended to the state's Department of Motor Vehicles. The ruling by Administrative Law Judge Juliet Cox determined that Tesla had been engaging in deceptive marketing practices for years, despite the company's insistence that its owner's manual and website clearly state the need for human supervision.
Tesla has already made one significant change by adding wording that emphasizes the need for human supervision while the Full Self-Driving package is in use. However, the company has brushed off the decision as regulatory overkill, arguing that no customers have come forward to report issues.
The threat of a sales suspension comes as Tesla faces a global downturn in demand, increased competition, and an older lineup of vehicles. Despite the slump, Tesla's stock price has reached an all-time high, reflecting investors' focus on Musk's artificial intelligence and robotaxi ambitions.
Critics have accused Tesla of exaggerating the capabilities of its self-driving technology, and the company has faced lawsuits alleging that its mischaracterizations have led to lethal accidents. Tesla has settled or prevailed in several cases, but the recent Miami jury verdict holds the company partly responsible for a lethal crash, ordering Tesla to pay over $240 million in damages.
