Tesla has initiated legal action against the California Department of Motor Vehicles (DMV) in a bid to overturn a recent ruling. The DMV concluded that Tesla had engaged in misleading marketing practices, exaggerating the automated driving capabilities of its vehicles in violation of state regulations.
This lawsuit revives a matter that seemed settled just last week when the DMV announced it would not suspend Tesla's sales and manufacturing licenses for a period of 30 days. This decision followed Tesla's compliance with the ruling, which included ceasing the use of the term "Autopilot" in its marketing within California. CNBC was among the first to report on this legal development.
Although the DMV had the option to impose penalties on Tesla, it opted for a more lenient approach. An administrative law judge had supported the DMV's request to suspend Tesla's licenses temporarily, yet the regulator ultimately allowed the company 60 days to adhere to the ruling.
In response, Tesla took significant measures, not only refraining from using the term Autopilot but also discontinuing the feature entirely in the U.S. and Canada earlier this year. This drastic action may suggest a reconsideration of that decision as the company seeks to navigate regulatory challenges.