Tesla(US:TSLA) CNBC·2026-02-23 21:10Core Viewpoint - Tesla is suing California's DMV to overturn a ruling that found the company guilty of false advertising regarding its self-driving capabilities [1][2]. Group 1: Legal Actions and Allegations - The lawsuit follows a determination by California's Office of Administrative Hearings that Tesla engaged in false advertising, which could lead to a temporary suspension of its licenses to manufacture or sell cars in the state [1]. - Tesla's complaint alleges that the DMV wrongfully labeled the company as a "false advertiser" for its use of terms like Autopilot and Full Self-Driving [2]. - The DMV requested Tesla to amend its marketing language, which Tesla complied with by February 17, avoiding immediate license suspension [2]. Group 2: Product Descriptions and Marketing - Tesla now markets its partially automated driver assistance system as "Full Self-Driving (Supervised)" and offers it on a subscription basis, contrasting with previous packages that included various tiers sold for a single upfront fee [3]. - The company has historically presented its systems as capable of operating without an attentive driver, despite owner manuals advising against such use [6]. Group 3: Future Prospects and Testing - Tesla's future success is heavily reliant on its ability to deliver safe driverless systems, with ongoing tests of automated vehicles in its Robotaxi pilot in Austin, Texas [5]. - The company recently announced the production of its Cybercab, a two-seater designed without a steering wheel or pedals, indicating a shift towards fully autonomous vehicles [5]. Group 4: Customer Reactions and Legal Challenges - A separate class action lawsuit is underway, where customers who purchased Full Self-Driving capabilities are seeking refunds, claiming they were misled about the vehicles' capabilities [8]. - Tesla was found partly liable for a fatal collision involving its Autopilot system, resulting in a $243 million verdict against the company [9].