California May Halt Tesla Sales over Exaggerated Full Self Driving Claims – MishTalk

Tesla’s FSD (Full Self Driving) is a perpetual lie by Elon Musk.

Please note California DMV files lawsuit against Tesla over self-driving capabilities

California regulators have once again claimed that Tesla misled consumers about the capabilities of its Autopilot and Full Self-Driving software. We’ve heard this one argued in courts before, and typically, Tesla comes away victorious. However, it’s back on the docket in California, and this time, it’s more than just a slap on the wrist at stake.

The argument is simple: the California Department of Motor Vehicles says that Tesla’s marketing made both software stacks sound like the car would let you prop your feet up and take a nap while the vehicle drove you to your destination.

Tesla has argued in filings that the company’s remarks in dispute are protected free speech under the First Amendment of the Constitution. Lawyers for the company also say 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.

The problem for Tesla is that its tech, both Autopilot and FSD, are Level 2 driver assistance systems. Tesla even admitted to the California DMV in 2021 that even its final release of Autosteer for City Streets would remain a Level 2 system. And claims made between 2021 and 2022 are the DMV’s key argument.

If the courts find that Tesla did mislead consumers, the company could be in some trouble. The DMV is out for blood and is seeking to suspend or revoke the automaker’s dealer license for up to 30 days. That means the single state responsible for a third of the brand’s U.S. demand could go dark for an entire month in a time when sales are already hurting over political issues caused by the company’s CEO.

Musk Is a Liar

Musk says that false advertising is free speech.

Maybe his argument that false advertising is OK holds up again in court. But it also says loud and clear that Musk is liar.

Road and Track View

Road and Track Link: Tesla’s follow-through on certain claims hasn’t always been the most timely nor accurate. The Cybertruck was delayed by two years, the second-generation Roadster hasn’t joined the all-electric party after half a decade of teasers, and we’ve yet to see the sub-$30,000 Tesla that CEO Elon Musk has long promised.

Regulators in California began investigating the semi-autonomous driving technology in 2021 and issued two formal administrative charges in the Office of Administrative Hearings for falsely implying its vehicles were fully autonomous. Now, according to Ward’s Auto, the California DMV is seeking to order a 30-day stop sale on Tesla models in California.

Tesla’s defensive position has focused on disclaimers attached to the Full Self-Driving and Autopilot functions that state “active human supervision” is required. [Then it’s not FSD is it?]

Other arguments include the fact that Tesla was granted “implicit” permission to use the two monikers by the State of California and that limiting its ability to advertise with certain terms is actually a violation of its first amendment right to free speech.

Judge Juliet Cox, an administrative law judge with the California Office of Administrative Hearings in Oakland, hasn’t bought into some of these arguments. Cox initially denied Tesla’s motion to dismiss the case in June 2024, stating that the DMV has established its case with sufficient evidence. A federal, class action lawsuit related to false advertising has also been allowed to move forward, indicating a degree of legitimate legal precedent for the courts to at least hear the cases.

The potential legal implications for Tesla are serious — though the automaker could challenge the DMV’s decision in California’s Supreme Court and request a stay of enforcement during the appeal — but the more pressing fallout could revolve around its sales figures. The first half of the year has not been kind to Tesla’s bottom line, as deliveries fell 13.5% globally in the second quarter of 2025. Tesla’s positioning in California isn’t in great shape, either, with registration figures for the all-electric models falling 21.1% in the last quarter. That’s the seventh consecutive quarterly registration drop for Tesla in the state.

But it’s not just traditional sales figures that are cause for concern. Tesla will soon run its regulatory credit scheme dry, as the Trump Administration prepares to change provisions of the tailpipe emissions credits that Tesla regularly sold to other automakers. In short, Tesla earned these regulatory credits en masse thanks to being an all-electric automaker and then turned around and sold them to automakers like General Motors, aiding more traditional brands in fulfilling their Corporate Average Fuel Economy requirements. ICE-intensive brands would be obligated to buy these credits in order to avoid fines from federal agencies for CAFE non-compliance, but new legislation introduced by the Trump administration will change that.

Robotaxi Expansion to San Francisco

FSD Crash Data

The Cybertruck is the New Edsel

Tesla used to brag about millions of reservations and dozens of celebrities and influencers wanting one. Now, it doesn’t even want you to know that the Cybertruck still exists.

A Delusional $20 Trillion Valuation