Tesla is now at the center of a five-day legal hearing in Oakland, where the California Department of Motor Vehicles is seeking to suspend or revoke the company’s dealership license. The accusation? That Tesla misled consumers by advertising its Autopilot and Full Self-Driving (FSD) systems as fully autonomous—when they weren’t.
📌 Key Allegations:
• The DMV alleges that Tesla’s marketing in 2021–2022 falsely implied its vehicles could drive themselves.
• Ads referenced capabilities like taking “short and long-distance trips with no action required.”
• Regulators argue Tesla violated California law by overstating what its tech could do.
Tesla, in its defense, claims the DMV is infringing on First Amendment rights, and that clear disclaimers were provided explaining drivers must stay engaged at all times.
💥 What’s at Stake?
If the DMV wins, Tesla could lose the ability to sell in California—the largest car market in the U.S. Elon Musk has long positioned self-driving tech as Tesla’s future, even promising a robotaxi fleet and calling his vehicles the “safest cars ever made.” But regulators are pushing back hard.
📍Meanwhile in Florida:
Tesla is also facing a separate trial in Miami tied to a 2019 fatal crash involving Autopilot. The company denies liability, saying public statements were aspirational, not misleading.
👩⚖️ Expert Insight:
Engineering professor Mary “Missy” Cummings testified that Tesla’s branding leads to driver complacency, especially with terms like “Autopilot.” She argues the language misleads users about how much attention is required—concerns echoed by federal safety investigators.
⚠️ In 2023, a national safety probe led to a recall of 2 million Teslas due to driver-assist systems failing to ensure alertness behind the wheel.
🍔 Tesla’s Diner Diversion:
While legal risks pile up, Tesla just launched a flashy retro-futuristic diner in Los Angeles. Located on Santa Monica Boulevard, it features:
• A 1950s-inspired aesthetic
• Supercharger stations
• Drive-in movie experience
• Food served in Cybertruck-shaped containers
Elon Musk says more diners may open globally if this concept succeeds.
⚖️ The Bigger Picture:
While Tesla promotes entertainment and innovation, regulators are focused on accountability. The DMV case (21-02188) could have serious implications for Tesla’s business in California. The verdict may decide whether Tesla continues selling in the state—or faces operational roadblocks.