Judge orders Tesla to make major change or halt sales in California

Core Viewpoint - Tesla has been ruled deceptive in its marketing of Full Self-Driving (FSD) technology, which has been classified as Level 2 automation rather than the previously claimed Level 4, leading to legal repercussions from the California Department of Motor Vehicles [1][6][9]. Group 1: Legal and Regulatory Developments - The California Department of Motor Vehicles filed a complaint against Tesla in July 2022 for misleading statements regarding FSD and Autopilot, threatening to revoke Tesla's vehicle dealer and manufacturing licenses [5]. - A California judge ruled against Tesla, stating that the company misled customers about the capabilities of its FSD technology, siding with the California DMV [6]. - The judge proposed a 30-day suspension of Tesla's selling and manufacturing licenses in California, although the DMV later modified this penalty [8]. Group 2: Technology Classification - SAE International classifies advanced driver assistance systems like Tesla's FSD as Level 2 automation, which necessitates driver engagement [1][3]. - True autonomy is classified as Level 3 and above, where no human intervention is required, but a present driver must be ready to take control when prompted [3]. - Robotaxi services, including those from Tesla, are considered Level 4, as they can navigate without driver input but still have traditional controls [4]. Group 3: Consumer Perception - The judge noted that a reasonable consumer might mistakenly believe that a vehicle with Full Self-Driving Capability can operate safely without constant driver attention, which is misleading both technologically and legally [9].