ByAlan Ohnsman,
Forbes Staff.
Tesla will be temporarily unable to sell new electric vehicles in California for a month unless the carmaker led by billionaire Elon Musk changes what the state and a judge determined are deceptive marketing practices for its Autopilot and Full Self-Driving features.
Administrative Judge Juliet Cox ruled that the Austin-based company has for years misled buyers with regard to the level of automation Tesla’s currently have, leading them to think its vehicles are more capable of driving themselves than they really are, the Department of Motor Vehicles said in a statement. She recommended a 30-day sales and production suspension in California, Tesla’s biggest U.S. market, as punishment. The DMV isn’t immediately imposing the sales ban and instead said it’s given Tesla 60 days to modify marketing language for Autopilot and FSD. The agency said it doesn’t intend to suspend production at Tesla’s Fremont, California plant.
“The DMV’s decision today confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers and pedestrians protected,” DMV Director Steve Gordon said in an emailed statement. “Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve in California's nation-leading and supportive innovation marketplace.”
