Tesla(US:TSLA) Huan Qiu Wang Zi Xun·2025-07-23 03:14Core Viewpoint - Tesla is facing a legal challenge from the California Department of Motor Vehicles (DMV) regarding allegations of misleading advertising related to its Autopilot and Full Self-Driving (FSD) features, which could result in the suspension of its dealer license in California, significantly impacting its operations in the largest U.S. market for electric vehicles [1][3]. Group 1: Allegations and Legal Proceedings - The DMV accuses Tesla of claiming that its Autopilot and FSD features can perform driving tasks without driver intervention, which misrepresents the capabilities of these advanced driver assistance systems that still require driver supervision [3]. - The DMV's amended complaint highlights that Tesla's promotional materials failed to clearly differentiate between "technological vision" and "actual capabilities," leading to consumer misconceptions [3]. - A ruling from an administrative law judge in June 2024 indicated that Tesla's advertising could lead consumers to over-rely on these systems, increasing accident risks, and if upheld, could result in license suspension and compensation to affected customers [4]. Group 2: Market Impact and Broader Implications - California represents Tesla's largest market, accounting for one-third of U.S. electric vehicle sales, and is also a critical production hub with the Fremont factory capable of producing 650,000 vehicles annually [4]. - The outcome of this case may trigger regulatory scrutiny across the U.S., as evidenced by a related case in Florida involving a fatal accident linked to the Autopilot feature, where Tesla's marketing language is also being examined [4].