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Tesla’s response to the DMV’s false advertising allegations: What took so long?

by Celia

Seven years after Tesla released the automated driving feature it calls Full Self-Driving, the California Department of Motor Vehicles is making false advertising allegations with serious implications for the electric car maker.

Tesla’s defence is that the DMV has let the company slide for so many years that the case no longer has legal standing. The company, led by chief executive Elon Musk, also says the DMV is violating its free speech rights under the US Constitution’s 1st Amendment.

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The DMV “has been aware of Tesla’s use of the brand names Autopilot and Full Self-Driving Capability since Tesla began using those names in 2014 and 2016, respectively,” the company said in a response filed with a state administrative court on Friday.

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The company “relied on [the DMV’s] implicit approval of these brand names” and “the DMV chose not to take any action against Tesla or otherwise communicate to Tesla that its advertising or use of these brand names was or could be problematic,” the response said.

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As for free speech, Tesla claims the state’s autonomous vehicle false advertising rules “impermissibly restrict constitutionally protected speech that is truthful and not misleading”.

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The DMV began its investigation in May 2021. It filed its administrative complaint in July 2022, and spent the next year researching the case before requesting a trial date.

In a motion filed on 20 November, the DMV accused Tesla of misleading car customers with numerous false statements about Autopilot and full self-driving. One example: “The system is designed to perform short and long distance driving without the need for any action by the person in the driver’s seat.” Whatever the design intent, neither Autopilot nor Full Self-Driving is yet capable of completing a full journey without driver interaction.

Musk has made wilder claims over the years, but has usually hedged them with words like “expect” and “hope”.

Several customers have sued Tesla after spending $8,000 to $15,000 for a feature called full self-driving, which most independent driverless car experts agree cannot drive itself.

If the DMV wins its case, Tesla’s California manufacturer’s licence could be revoked and the company could be required to pay restitution to “persons or entities who have suffered financial loss or damage”, according to the legal filing.

Meanwhile, the National Highway Traffic Safety Administration’s multi-year investigation into the safety of autopilot and fully self-driving continues, including investigations into fatal crashes and crashes into police cars and ambulances. So far, NHTSA Acting Administrator Ann Carlson and her boss, Department of Transportation Secretary Pete Buttigieg, have declined to discuss the investigations and how long they’ll take.

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