Tesla faces legal battle with California DMV over Autopilot and FSD statements.

Tesla faces legal battle with California DMV over Autopilot and FSD statements.

Tesla Inc. is set to face off with the California Department of Motor Vehicles (DMV) over claims that the company has exaggerated the capabilities of its Autopilot and Full Self-Driving (FSD) technology and misled consumers. The hearing, scheduled to begin on July 2, 2025, in Oakland, could have significant implications for Tesla, as it comes at a critical juncture for the company's push into autonomous driving and robotaxi services.

The California DMV alleges that Tesla violated state law by making "untrue or misleading" statements in 2021 and 2022 while advertising its vehicles with advanced driver-assistance systems. The regulator seeks to suspend or revoke Tesla's dealer license, which permits it to sell vehicles in the most populous state. The DMV claims that Tesla vehicles equipped with driver-assist technology "could not at the time of those advertisements, and cannot now, operate as autonomous vehicles" [3].

Tesla has maintained that its statements were protected free speech under the First Amendment of the US Constitution. The company argues that the marketing statements cited by the DMV have been taken out of context and that the regulator is failing to consider Tesla's warnings and disclosures about the systems. Tesla has also contended that its vehicles are not autonomous and require active driver supervision [3].

The hearing comes as Tesla is in the midst of a jury trial in Miami over whether Autopilot is partly to blame for a 2019 collision involving a distracted Tesla Model S driver that killed a pedestrian. The trial, which began on July 1, 2025, is expected to take three weeks. Tesla has denied wrongdoing in the Florida case and in the California proceeding [1].

The trial and hearing highlight the ongoing scrutiny of how Tesla's driver-assistance software is marketed and how well it performs. The automotive industry categorizes automation systems in vehicles from Level 0 to 5, based on what features are available. Tesla's Autopilot is classified as Level 2 because it requires constant driver input and supervision [3].

Mary "Missy" Cummings, an engineering professor at George Mason University, called by the plaintiffs as an expert witness on safety, told jurors that the statements made by Tesla can encourage driver "complacency" and instill a false understanding of what a vehicle is capable of doing. She said even calling the software Autopilot creates "a mismatch in the consumer's head" [2].

The case is In the Matter of the First Amended Accusation Against: TESLA, INC, 21-02188, Department of Motor Vehicles, State of California [3].

References:
[1] https://www.reddit.com/r/RealTesla/comments/1lzpcpx/tesla_faces_first_jury_trial_tied_to_its/
[2] https://www.bloomberg.com/news/articles/2025-07-16/tesla-failed-to-stop-autopilot-misuse-safety-expert-testifies
[3] https://www.bloomberg.com/news/articles/2025-07-21/tesla-to-fight-california-s-claim-it-overhypes-autopilot