Tesla's ability to sell cars in California hangs in the balance after a weeklong 'high-stakes' court hearing

Core Viewpoint - Tesla's ability to sell cars in California is at risk due to a lawsuit from the California Department of Motor Vehicles (DMV) regarding misleading advertising of its driver assistance technologies [1][2]. Group 1: Legal Proceedings - The DMV's lawsuit, initiated in 2022, seeks to suspend Tesla's car sales in California for at least 30 days and demands monetary damages for consumers [1][2]. - The court hearing concluded without a final ruling, leaving Tesla's sales in California uncertain [1]. - Tesla's legal team argues that the company has always been transparent about the limitations of its "Full Self-Driving" (FSD) and "Autopilot" technologies [4]. Group 2: Advertising Claims - The DMV alleges that Tesla falsely advertised its FSD and Autopilot systems, leading consumers to believe the vehicles were more autonomous than they actually are [2][10]. - Testimonies during the hearing highlighted conflicting information in Tesla's advertising, with a DMV witness stating that the term "Autopilot" is misleading when paired with disclaimers urging driver attentiveness [11][10]. - A survey commissioned by Tesla claimed consumers were not confused by the terminology, although it did not account for all potential Tesla users [12]. Group 3: Market Impact - Tesla's sales have declined in the first half of 2025, coinciding with negative publicity surrounding CEO Elon Musk and nationwide protests against the company [3]. - The lawsuit is considered "very high-stakes" for Tesla, as it faces multiple legal challenges related to its driver assistance technologies [13]. - Additional legal issues include a wrongful death complaint in Florida and a class-action lawsuit regarding "phantom braking" incidents [14][15].