Tesla Inc. (NASDAQ: TSLA) sues California Department of Motor Vehicles (DMV) after the automaker dropped the term “Autopilot” from its marketing efforts amid the false advertising row.
Tesla is unfoundedly labeled as a false advertiser, the court said
Lawyers representing Elon Musk’s EV giant argue the agency has not proven there was confusion among customers about the technologies’ capabilities. “DMV presented no consumer witnesses and instead relied almost entirely on the testimony of a single law professor,” the filing said, adding that the brand had clarified that the Autopilot and FSD Supervised technologies do not make vehicles autonomous.
California DMV vs. Tesla
The news comes as California’s DMV sued the automaker, seeking a 30-day suspension of Tesla’s sales and manufacturing operations in the state, alleging the automaker misled consumers about the capabilities of its systems.
Although a court ruled in the agency’s favor, the DMV did not go through with the suspension and ultimately gave Tesla a 90-day period to correct its marketing practices and Tesla avoided a suspension.
Tesla’s FSD
Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers favorable long-term price performance.
Price promotion: TSLA fell 2.91% to $399.83 at market close on Monday, and rose 0.19% to $400.57 during the overnight session.
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