California DMV files lawsuit against Tesla over self-driving capabilities

FREMONT, Calif. (KRON) — The California Department of Motor Vehicles is arguing before an administrative judge in Oakland that Tesla has misled drivers by exaggerating the capabilities of its Autopilot and Full Self-Driving features. The DMV is seeking to ban the Elon Musk-led automaker from selling cars in the state for 30 days.

The DMV is accusing Tesla of false advertising. A court filing claims even the feature names “Autopilot” and Full Self-Driving” are misleading because they offer just partial self-driving.

Musk has been warned by federal regulators to stop claiming his cars can drive themselves because it could cause drivers to depend on the system.

Tesla has faced a slew of lawsuits over its Autopilot system over the past five years. Each of them has either been dismissed or settled out of court.

In 2023, Tesla had to recall more than 2 million cars for Autopilot problems. The company is being investigated for claiming it fixed the problem.

Court hearings in Oakland are expected to continue through Thursday.

The Associated Press contributed to this report.