**Tesla Challenges California Over Self-Driving Capability Claims**


"Lawsuit filed by Tesla against California DMV over claims of misrepresenting automated driving capabilities. Dispute centers around allegations of decepti

**California DMV, Tesla Engage in Legal Dispute Over Automated Driving Claims**

- **Tesla Files Lawsuit Against California Department of Motor Vehicles**

Tesla Inc., the electric vehicle manufacturer, has initiated a lawsuit against the California Department of Motor Vehicles (DMV) to challenge a ruling that the company allegedly misrepresented the automated driving capabilities of its vehicles.

- **Allegations of Deceptive Marketing and Violation of State Law**

The state DMV claimed that Tesla's marketing materials overstated the self-driving capabilities of its vehicles, thereby contravening California law. The lawsuit comes after the DMV announced last week that it would not suspend Tesla's sales and manufacturing licenses for 30 days due to compliance with the ruling.

- **Previous Regulator Action**

Initially, an administrative law judge agreed with the DMV's request to suspend Tesla's licenses for 30 days as a penalty. However, instead of enforcing the suspension, the state regulator opted to give Tesla 60 days to comply with the ruling.

- **Tesla's Compliance and Subsequent Actions**

Tesla complied by ceasing to use the term "Autopilot" in its California marketing materials, but it went beyond this requirement. In January, Tesla discontinued Autopilot altogether in the U.S. and Canada, suggesting a possible reconsideration of this decision.

**Key Notes:**

- Tesla is suing the California DMV over claims of deceptive marketing regarding automated driving capabilities.

- The state DMV ruled that Tesla violated state law by misrepresenting self-driving features.

- Last week, the DMV decided not to suspend Tesla's licenses due to compliance with the ruling.

- An administrative law judge had earlier agreed to suspend Tesla's licenses for 30 days as a penalty.

- Instead of suspension, the state regulator gave Tesla 60 days to comply.

- Tesla complied by stopping use of "Autopilot" in California marketing materials and discontinued Autopilot altogether in the U.S. and Canada.


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