California Regulator Temporarily Halts Tesla Sales Suspension Order

A California regulator has deferred an order for Tesla to suspend sales in its largest U.S. market, providing the electric vehicle manufacturer additional time to address accusations of misleading marketing and exaggerating its self-driving capabilities.

The Department of Motor Vehicles (DMV) had initially ordered a 30-day suspension of Tesla’s manufacturing and sales licenses, following a judge’s recommendations. However, DMV Director Steve Gordon announced on Tuesday that this order has been put on hold.

Related: Tesla Sued Over Fatal Crash in Washington in Growing Scrutiny of Doors

This stay comes as a relief for Tesla, which, like many of its competitors, is facing a significant decline in electric vehicle demand after the expiration of tax credits that previously boosted sales.

Meanwhile, CEO Elon Musk has shifted Tesla’s focus towards developing robotaxis equipped with self-driving technology and humanoid robots, with much of the company’s valuation now hinging on these ambitious projects.

In 2022, the DMV accused Tesla of misleading consumers by using the terms Autopilot and Full Self-Driving (FSD) for its advanced driver assistance features. The regulator informed Judge Juliet Cox of the Office of Administrative Hearings that these names falsely suggested that the vehicles could operate autonomously.

Related: Tesla Sued Over Claim Faulty Doors Led to Deaths in Fiery Crash

During the hearing, a lawyer representing Tesla argued that the company had “clearly and consistently” communicated that vehicles equipped with Autopilot and FSD software require human supervision and are not fully autonomous.

Judge Cox proposed the suspension, which the DMV adopted but subsequently put on hold. Gordon expressed the agency’s desire to give Tesla “one more chance to remedy the situation,” hoping the company would find a way to correct the misleading statements.

Related: Tesla Owner Complaints Rise in Probe Over Inoperative Doors After Battery Failures

The DMV has now stayed the suspension of Tesla’s sales license for 90 days, while the manufacturing license remains indefinitely on hold.

To avoid suspension, the DMV stated that Tesla can either confirm it has ceased using the name Autopilot for its driver assistance software or affirm that its vehicles can operate without human monitoring.

Additionally, the DMV indicated that Tesla has the option to appeal the suspension or seek a court review by February 14.

In a statement, Tesla remarked, “This was a ‘consumer protection’ order regarding the use of the term ‘Autopilot’ in a case where not a single customer has come forward to report an issue. Sales in California will continue uninterrupted.”

A spokesperson for Tesla declined to provide further details on how the company determined that no customers had complained. They also did not clarify whether Tesla would stop using the Autopilot name or pursue an appeal.

Autopilot assists Tesla vehicles in accelerating, braking, and maintaining lane position on highways, while Full Self-Driving allows vehicles to change lanes and obey traffic signals in urban settings.

The DMV has narrowed its focus to the term Autopilot as Tesla has made adjustments to the FSD during the proceedings, according to Gordon, although he did not elaborate on these changes.

Tesla has introduced the term “Supervised” for FSD in passenger vehicles. It also employs an unsupervised version of the software for moving cars from assembly lines to delivery lots at some factories and utilizes FSD for a robotaxi service in Austin, Texas, with human safety monitors in the front passenger seats and remote support.

(Reporting by Roy in San Francisco and Kirkham in Los Angeles; Additional reporting by Juby Babu in Mexico City and Mike Scarcella in Washington D.C.; Editing by David Gregorio and Christopher Cushing)

Topics
California
Tesla

A California regulator has deferred an order for Tesla to suspend sales in its largest U.S. market, providing the electric vehicle manufacturer additional time to address accusations of misleading marketing and exaggerating its self-driving capabilities.

The Department of Motor Vehicles (DMV) had initially ordered a 30-day suspension of Tesla’s manufacturing and sales licenses, following a judge’s recommendations. However, DMV Director Steve Gordon announced on Tuesday that this order has been put on hold.

Related: Tesla Sued Over Fatal Crash in Washington in Growing Scrutiny of Doors

This stay comes as a relief for Tesla, which, like many of its competitors, is facing a significant decline in electric vehicle demand after the expiration of tax credits that previously boosted sales.

Meanwhile, CEO Elon Musk has shifted Tesla’s focus towards developing robotaxis equipped with self-driving technology and humanoid robots, with much of the company’s valuation now hinging on these ambitious projects.

In 2022, the DMV accused Tesla of misleading consumers by using the terms Autopilot and Full Self-Driving (FSD) for its advanced driver assistance features. The regulator informed Judge Juliet Cox of the Office of Administrative Hearings that these names falsely suggested that the vehicles could operate autonomously.

Related: Tesla Sued Over Claim Faulty Doors Led to Deaths in Fiery Crash

During the hearing, a lawyer representing Tesla argued that the company had “clearly and consistently” communicated that vehicles equipped with Autopilot and FSD software require human supervision and are not fully autonomous.

Judge Cox proposed the suspension, which the DMV adopted but subsequently put on hold. Gordon expressed the agency’s desire to give Tesla “one more chance to remedy the situation,” hoping the company would find a way to correct the misleading statements.

Related: Tesla Owner Complaints Rise in Probe Over Inoperative Doors After Battery Failures

The DMV has now stayed the suspension of Tesla’s sales license for 90 days, while the manufacturing license remains indefinitely on hold.

To avoid suspension, the DMV stated that Tesla can either confirm it has ceased using the name Autopilot for its driver assistance software or affirm that its vehicles can operate without human monitoring.

Additionally, the DMV indicated that Tesla has the option to appeal the suspension or seek a court review by February 14.

In a statement, Tesla remarked, “This was a ‘consumer protection’ order regarding the use of the term ‘Autopilot’ in a case where not a single customer has come forward to report an issue. Sales in California will continue uninterrupted.”

A spokesperson for Tesla declined to provide further details on how the company determined that no customers had complained. They also did not clarify whether Tesla would stop using the Autopilot name or pursue an appeal.

Autopilot assists Tesla vehicles in accelerating, braking, and maintaining lane position on highways, while Full Self-Driving allows vehicles to change lanes and obey traffic signals in urban settings.

The DMV has narrowed its focus to the term Autopilot as Tesla has made adjustments to the FSD during the proceedings, according to Gordon, although he did not elaborate on these changes.

Tesla has introduced the term “Supervised” for FSD in passenger vehicles. It also employs an unsupervised version of the software for moving cars from assembly lines to delivery lots at some factories and utilizes FSD for a robotaxi service in Austin, Texas, with human safety monitors in the front passenger seats and remote support.

(Reporting by Roy in San Francisco and Kirkham in Los Angeles; Additional reporting by Juby Babu in Mexico City and Mike Scarcella in Washington D.C.; Editing by David Gregorio and Christopher Cushing)

Topics
California
Tesla