"Tesla Inc.'s car sales in California are poised to be suspended for 30 days over marketing practices that allegedly mislead consumers about the automated-driving capabilities of its vehicles. The California Department of Motor Vehicles said Tuesday the suspension won't take effect for 90 days to give Tesla time to appeal or come into compliance. The agency accused the company of exaggerating the abilities of features marketed as Autopilot and Full Self-Driving, and had asked an administrative judge to weigh whether a suspension is warranted."
"We're really asking Tesla to do their job, as they've done in other markets, to properly brand these vehicles, Steve Gordon, director of the California DMV, told reporters. He said in a statement the company can take simple steps to resolve the issue permanently. A suspension of Tesla's sales license would be a major blow to the Austin-based company. California is the biggest market for car sales in the US and the leading state for electric vehicle adoption, making even a temporary disruption potentially costly."
California's Department of Motor Vehicles is prepared to suspend Tesla Inc.'s car sales license in the state for 30 days over allegations that the company misled consumers about the automated-driving capabilities of Autopilot and Full Self-Driving. The suspension will be delayed 90 days to allow Tesla to appeal or come into compliance. The DMV accused Tesla of exaggerating feature abilities and asked an administrative judge to consider a suspension. The regulator said Tesla can address concerns by properly branding vehicles. California is Tesla's largest U.S. market and a suspension could be materially damaging. Tesla's lawyers argued First Amendment protections and said the marketing was taken out of context; Tesla added that sales will continue.
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