California’s Department of Motor Vehicles (DMV) is seeking to ban Tesla from selling vehicles in the state, arguing that the company has misled consumers about its Autopilot and Full Self-Driving features. The DMV claims that Tesla’s marketing suggests its cars can drive autonomously, which they cannot. The case is being heard in an administrative court in Oakland, where the DMV is pushing for a 30-day suspension of Tesla’s sales license in California and restitution for misleading consumers.
Elon Musk, Tesla’s CEO, is facing legal challenges on both coasts. In Miami, a Tesla driver, George McGee, admitted to being distracted by his phone moments before a fatal accident while using Autopilot. McGee stated, “I trusted the technology too much,” highlighting concerns about overreliance on Tesla’s driver-assistance systems. The Miami case could result in significant punitive damages against Tesla, potentially setting a precedent for other lawsuits.
Tesla’s attorneys argue that the company’s manuals clearly state drivers must supervise their vehicles when using automated-driving features. However, the DMV’s case in California points to the misleading nature of terms like “Autopilot” and “Full Self-Driving,” which imply full autonomy. The DMV’s Melanie Rosario testified that Tesla’s branding is contradictory and misleading, citing consumer complaints and advertising materials.
The outcome of these cases could significantly impact Tesla’s operations and Musk’s plans to roll out driverless robotaxis in the U.S. by next year. The California case is expected to continue through the end of the week, while the Miami trial is set to last two more weeks.
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