Tesla sues California DMV after it banned the term 'Autopilot'
Source: Engadget
Overview
Tesla is suing California’s Department of Motor Vehicles (DMV) to reverse a ruling that prevented the automaker from using the terms “Autopilot” and “Full Self‑Driving” to sell cars, as reported by CNBC. The dispute follows a December ruling by a California administrative law judge that forced Tesla to clean up its marketing language or risk a suspension of its sales license. Last week, the DMV determined that Tesla had made the necessary changes—including renaming the feature to “Full Self‑Driving (Supervised)”—and that no suspension would occur.
Legal Action
- Complaint filing: Tesla filed a complaint on February 13, alleging that the DMV “wrongfully and baselessly” labeled the company a false advertiser.
- Tesla’s argument: The automaker called the order “factually wrong” and “unconstitutional,” demanding that it be set aside.
- DMV’s position: The DMV argued that Tesla’s driver‑assistance terminology gave consumers the impression that the cars were safe to drive without a human at the wheel.
- Tesla’s rebuttal: Tesla contended that the DMV never proved buyer confusion and that it is “impossible” to purchase a Tesla without seeing “clear and repeated statements” that its systems aren’t fully autonomous.
Impact on Autonomous‑Vehicle Plans
Tesla’s appeal is unsurprising given the company’s heavy reliance on autonomous‑vehicle technology for its future growth. CEO Elon Musk has long promised that Tesla vehicles will eventually become fully autonomous and that owners could rent them out as robo‑taxis. In 2019, Musk predicted that within about 15 months the fleet would include over a million robo‑taxis.
- Cybercab pilot: Following a steep sales decline last year—especially in Europe—Tesla is banking on its two‑seater Cybercab to boost fortunes. The company has begun limited testing of automated vehicles as part of its Robotaxi pilot in Austin, Texas.
- Recent product changes: Last month, Tesla discontinued the basic Autopilot tier on new Model 3 and Model Y vehicles and switched its Full Self‑Driving (Supervised) tier to a subscription‑only model.
Related Legal Issues
- $243 million lawsuit: Last week, Tesla lost an appeal in a $243 million verdict related to a 2019 Model S crash, a case that also centered on the use of the “Autopilot” and “Full Self‑Driving” terms.