Tesla Faces California DMV Hearing Over Autopilot Marketing Claims

Tesla Inc. began a five-day administrative hearing in Oakland on 21 July after the California Department of Motor Vehicles accused the carmaker of exaggerating the capabilities of its Autopilot and Full Self-Driving driver-assistance systems in marketing materials issued in 2021 and 2022. The DMV argues that the advertisements suggested Tesla vehicles could operate autonomously, violating state consumer-protection laws. The regulator is seeking to suspend or revoke Tesla’s dealer license, a move that could halt sales in the company’s largest U.S. market. Tesla denies wrongdoing, contending in legal filings that its statements are protected speech and that it consistently warns drivers that the systems require active supervision. The company’s software—classified as Level 2 automation—has faced repeated federal probes, including a 2023 recall of about 2 million vehicles to improve driver-attention safeguards. The California case unfolds as Tesla simultaneously defends itself in a Miami jury trial over a fatal 2019 crash involving Autopilot, underscoring the intensifying scrutiny of the company’s driver-assistance technology and its marketing.