Tesla faces temporary sales suspension in California
First reported by Electrek, Tesla could temporarily lose its license sell cars in California amid a lawsuit brought by the state's DMV, which alleges that the automaker is misrepresenting the capability of its driver aids, constituting false advertising. The DMV is looking to suspend Tesla's ability to sell cars in California for 30 days. That would be a major blow to the automaker.
According to Electrek, the California DMV has been investigating Tesla for misleading customers about the capabilities of its driver-assist tech since 2021. The agency is reportedly concerned not only about the names of the features, but about statements by the automaker, such as one claiming that such tech "is designed to be able to conduct shot and long-distance trips with no action required by the person in the driver's seat."
The California DMV also flagged a public statement from Tesla in which the automaker claims that "all you need to do is get in and tell your car where to go." In response, Tesla has reportedly argued that in-car warnings for drivers to stay attentive at all times are sufficient to prevent customers from misconstruing the capabilities of its driver-assist systems.
That doesn't seem to have been a convincing argument as, during a five-day court hearing on the matter, the California DMV said that it is seeking a suspension of Tesla's manufacturer and dealer license "for not less than 30 days," as well as financial restitution, with an amount to be determined at a future hearing.
This isn't the first time Tesla has faced scrutiny from government agencies over the way it's portrayed its driver-assist tech to customers. In 2021, Jennifer Homendy, chairwoman of the National Transportation Safety Board (NTSB), called Tesla's Full Self-Driving nomenclature "misleading and irresponsible." The federal government has also investigated Tesla driver aids multiple times in recent years, including one earlier this year of the "Smart Summon" remote parking feature involving 2.6 million vehicles.
But where previous investigations have usually resulted in recalls or orders to address potential safety faults, this lawsuit could impact Tesla's already-declining sales. California is not only the biggest market for EVs in the United States, but the biggest market for new cars overall. Even a short suspension of sales is not what the automaker needs.
Tesla saw a big year-over-year sales drop in the second quarter, just as top sales executives left the company. Meanwhile, its new head of sales is a former IT executive with no sales experience. And the federal government's suspension of emissions penalties means Tesla could lose business from the sale of compliance credits-a revenue stream that's often been more important to the company's bottom line than car sales.
Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Piper Sandler: Tesla (TSLA) Jury Ruling Is No Reason to Panic
Tesla, Inc. (NASDAQ:TSLA) is one of the . On August 4, Piper Sandler analyst Alexander Potter reiterated an "Overweight" rating on the stock with a $400.00 price target. The firm said investors shouldn't be over-reacting to headlines surrounding Tesla's recent Autopilot-related jury verdict in Florida. It believes the case is less significant than it seems. 'In our years covering TSLA, we've learned to ignore headlines related to Autopilot liability. But the robotaxi roll-out has breathed new life into this topic, and we feel compelled to comment on recent media intrigue. On Friday, when a jury in Florida found Tesla partially liable for a 2019 crash, headlines began proliferating, referring to a 'stunning rebuke', a 'massive blow', and a $243M obligation. In our view, these headlines paint an unrealistically negative picture. In short, we don't think shareholders should be losing sleep over this.' Pixabay / Public Domain Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Must-Watch AI Stocks on Wall Street and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Tesla Cybertrucks Wanted By Air Force As Missile Targets
The U.S. Air Force is looking to buy two Tesla Cybertrucks for use as targets for precision munitions during testing and training. The service says it needs these vehicles for this purpose specifically because of the prospect of unspecified adversaries driving around in them in the future. The Cybertrucks are among 33 target vehicles the Air Force Test Center (AFTC) is looking to acquire and have delivered to the White Sands Missile Range (WSMR) in New Mexico, according to contracting documents recently posted online. WSMR is run by the U.S. Army, but the Air Force has a significant presence there. There are no name-brand requirements for the other sedans, bongo trucks, pickups, and SUVs, that are also on AFTC's shopping list. The primary intended use of all of the target vehicles is in support of U.S. Special Operations Command's (SOCOM) Stand Off Precision Guided Munitions (SOPGM) program and related training. SOPGM covers multiple special operations-specific air-launched precision-guided munitions, including multiple variants of the AGM-114 Hellfire, the AGM-176 Griffin missile, the GBU-69/B Small Glide Munition (SGM), and the GBU-39B/B Laser Small Diameter Bomb (LSDB). The explicit requirement for the Cybertrucks – which do not need to be in running condition, but do need to be able to roll towed behind another vehicle – requires a formal sole-source justification, a redacted copy of which is among the documents that AFTC has shared online. 'On 13 February 2025, market research was conducted to assess the competition for the Tesla Cybertruck by evaluating its design, materials, impact resistance, and innovative technologies. The study revealed that the Cybertruck's aggressively angular and futuristic design, paired with its unpainted stainless steel exoskeleton, sets it apart from competitors typically using painted steel or aluminum bodies,' the justification document explains. 'Additionally, its 48V electrical architecture provides superior power and efficiency, a feature that rivals are only beginning to develop. Extensive internet searches and industry outreach by [redacted] found no vehicles with features comparable to those of the Cybertruck.' More importantly, '[redacted] intends to uses [sic] specific Tesla manufactured vehicles for target vehicle training flight test events. In the operating theatre it is likely the type of vehicles used by the enemy may transition to Tesla Cyber trucks [sic] as they have been found not to receive the normal extent of damage expected upon major impact,' it adds. 'Testing needs to mirror real world situations. The intent of the training is to prep the units for operations by simulating scenarios as closely as possible to the real world situations.' The document does not elaborate on the 'operating theatre' or 'the enemy' in question, and TWZ has reached out to the Air Force for more information. Tesla effectively eliminated its public relations department years ago, but we have also reached out to its investor relations department for comment. As of this spring, an estimated 46,000 Cybertrucks have been sold to date, though the exact number is unclear. Currently, Tesla only offers Cybertrucks for sale in North America, though examples have been exported elsewhere in the world. Tesla did announce in April that it was planning to start direct sales in Saudi Arabia, the United Arab Emirates, and Qatar before the end of the year. Without more context, it is hard to say what may have prompted the belief that U.S. adversaries might soon be driving Cybertrucks. It is worth noting that the primary targets for SOCOM's SOPGM arsenal, at least as they are publicly known, have been terrorists and militants, especially ones riding in cars and trucks, in the Middle East, South and Central Asia, and parts of Africa. The Cybertruck's windows and side panels have been shown to be bullet-resistant, stopping subsonic pistol caliber rounds, something that was heavily touted with the vehicle was first unveiled in 2019. Tesla CEO Elon Musk has described the vehicle, which has a retail price starting at around $80,000, as being 'apocalypse-proof' in the past. At the same time, the Cybertruck has been dogged by recalls, controversies, and criticism over its actual performance, features (or lack thereof), safety issues, build quality, ownership terms of service, and more. There have been reports this year of flagging sales. TWZ did previously lay out a detailed case for a militarized uncrewed version of the Cybertruck, which you can find here. Multiple companies are now offering Cybertrucks with add-on armor and other features aimed at prospective law enforcement, military, and private security customers. There have been some sales of Cybertrucks to law enforcement agencies, including the Dubai Police. The U.S. State Department made headlines earlier this year over a possible purchase of Cybertrucks, a plan it subsequently said had been shelved indefinitely. The Dubai Police General Command has added the Tesla Cybertruck, the modern electric car with a futuristic design, to its tourist police luxury patrol fleet. — Dubai Policeشرطة دبي (@DubaiPoliceHQ) June 16, 2024 Last year, Ramzan Kadyrov, the dictatorial head of Russia's semi-autonomous Chechen Republic, also showed off several Cybertrucks with 12.7mm machine guns mounted in the back and claimed to have sent some of them to join the fighting in Ukraine. How and where Kadyrov, who the U.S. government and others have sanctioned, acquired the vehicles is unclear. He later claimed that Tesla had remotely disabled at least one of them. Kadyrov of Chechnya published a video with Tesla Cybertruck with a machinegun installed — Liveuamap (@Liveuamap) August 17, 2024 After complaining Elon Musk remotely disabled his souped-up Cybertruck, Chechen strongman Ramzan Kadyrov claims he has sent two more that Tesla couldn't turn says he sent them to the "zone of the special operation" in Ukraine. This was presumably filmed elsewhere. — max seddon (@maxseddon) September 20, 2024 What we do know is that the Air Force is looking to buy a pair of Cybertrucks to fire missiles and bombs during testing and training events based on the possibility that American forces may encounter enemies driving them going forward. Contact the author: joe@
Washington Post
2 hours ago
- Washington Post
Asking Eric: Friend's erratic driving causes concern
Dear Eric: My friend and I are in our mid-70s. We participate in several activities together — a book club, a continuing education class, et cetera. We often carpool together. I have begun to be very alarmed about my friend's driving habits. She brakes unexpectedly, veers across the center line and seems quite distracted. I'm more and more reluctant to get in a car that she is driving, as I actually think I might be in danger.
