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A California administrative judge, Juliet Cox, has rejected Tesla’s attempt to dismiss claims made by the state’s Department of Motor Vehicles (DMV).
The judge accused the automaker of overstating the capabilities of its vehicles’ self-driving features.
The DMV had accused Tesla of misleading consumers regarding vehicles equipped with Autopilot and Full Self-Driving technology, alleging that they could not operate as autonomous vehicles, as Tesla claimed.
If proven, these accusations could lead to enforcement actions against Tesla, including possibly suspending its license to sell vehicles in California and restitution to vehicle owners.
Tesla and its legal representatives have not immediately responded to requests for comment on the judge’s decision.
The DMV has indicated that its claims will undergo formal review before the Office of Administrative Hearings (OAH) on September 9.
Tesla’s legal troubles extend beyond California, with a San Francisco federal judge recently rejecting its attempt to dismiss a proposed nationwide class action lawsuit alleging consumer deception regarding self-driving capabilities.
Additionally, federal prosecutors are investigating whether Tesla committed fraud by misleading investors about its self-driving technology.
Tesla, headquartered in Austin, Texas, has maintained that its Autopilot and Full Self-Driving features assist drivers but do not render vehicles fully autonomous.
Despite legal challenges and federal probes, Tesla’s electric vehicle market share in California has declined, reflecting a challenging period for the company in its largest U.S. market.
Judge Cox’s decision highlights the significance of a formal hearing in addressing the DMV’s accusations against Tesla.
California’s market trends indicate a decline in Tesla’s year-over-year sales, emphasizing the potential impact of legal battles on the company’s operations and market performance.
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