Tesla is facing a five-day legal showdown in Oakland after the California Department of Motor Vehicles accused the company of flat-out lying about what its Autopilot and Full Self-Driving features can actually do. The DMV wants Tesla’s dealership license suspended or revoked, saying it misled Californians by claiming its vehicles could basically drive themselves, when they absolutely couldn’t. According to Bloomberg, the DMV filed this complaint after reviewing how Tesla promoted its systems back in 2021 and 2022. The hearing, which starts this week, is being handled by an administrative judge. It comes at a moment when Tesla is also battling a separate trial across the country in Miami, where jurors are being asked whether Autopilot contributed to the death of a pedestrian in 2019. In that crash, a Tesla Model S driver who was reportedly distracted struck and killed someone while the car was on Autopilot. Tesla denied responsibility in both that case and in California’s DMV proceeding. California hearing targets Tesla’s license over misleading claims The DMV’s complaint says Tesla broke state law by advertising its driver-assistance systems as if they were full-blown self-driving tech. They pointed to company statements suggesting the cars could make “short and long-distance trips with no action required in the driver’s seat.” The DMV said that at the time those ads ran, and still today, Tesla cars don’t operate independently. They wrote that these vehicles “could not at the time of those advertisements, and cannot now, operate as autonomous vehicles.” If California regulators succeed, Tesla would no longer be able to sell vehicles in the state, the biggest car market in America. Elon Musk, who leads the company, has staked Tesla’s future on self-driving. He’s been hyping a robotaxi fleet for years, calling his vehicles the “safest cars ever made.” The DMV, however, isn’t buying it. Tesla fired back in legal filings, saying the DMV’s accusations go against free speech rights protected under the First Amendment. The company claims regulators are ignoring clear disclaimers and that they’ve taken marketing messages out of context. In a February 2024 filing, Tesla wrote, “Tesla repeatedly and explicitly makes clear that its vehicles are not autonomous and require active driver supervision.” Despite this, California is pushing hard for consequences. Meanwhile, Tesla’s courtroom headaches aren’t just on the West Coast. Over in Miami, lawyers for the company told jurors that any statements made about self-driving were meant to describe future goals, not current abilities. They argued that comments from Elon and the company weren’t lies, they were just predictions. That explanation didn’t go over well with Mary “Missy” Cummings, a professor of engineering at George Mason University. She testified as an expert witness, saying Tesla’s marketing causes real confusion. According to Missy, even calling the system Autopilot misleads drivers. Missy added that labeling driver-assist systems this way leads to “complacency” and gives users the wrong idea about how much they need to be paying attention. And federal regulators seem to agree. In 2023, a major safety investigation ended with a recall of 2 million Tesla vehicles, after it was found that the driver-assistance program failed to ensure drivers stay alert. Tesla opens flashy diner while legal risks mount While Tesla is caught up in legal battles over its software, the company is also rolling out a retro diner in Los Angeles. The new spot sits on Santa Monica Boulevard and blends 1950s aesthetics with Tesla’s tech-driven vibe. It includes a Supercharger station, an outdoor movie setup with a 45-foot screen, and comfort food served in containers shaped like the Cybertruck. Elon posted a video of the location on X, saying, “If our retro-futuristic diner turns out well, which I think it will, Tesla will establish these in major cities around the world, as well as at Supercharger sites on long-distance routes. An island of good food, good vibes & entertainment, all while Supercharging!” He first teased the idea way back in 2018, promising roller skates and a rock ‘ n ‘ roll theme. Construction finally started in late 2023. The diner offers a menu stacked with burgers, hot dogs, wings, and hand-spun milkshakes, served in packaging designed to look like Tesla’s pickup. Visitors can park, plug in, and enjoy a drive-in movie while they wait, listening to the film through their Tesla car’s built-in sound system. Back in Oakland, though, regulators aren’t talking burgers. They’re talking business, and whether Tesla gets to keep doing it in California. The DMV case, officially titled In the Matter of the First Amended Accusation Against: TESLA, INC, 21-02188, will determine if the company keeps its right to sell cars in the state. Elon may be serving milkshakes, but the government wants accountability. KEY Difference Wire helps crypto brands break through and dominate headlines fast
