On December 17th, reports emerged indicating that the California Department of Motor Vehicles (DMV) had accused Tesla of misleading consumers by overstating the capabilities of its driver-assistance technology. The DMV has mandated that Tesla must make necessary rectifications; otherwise, its sales in California will be suspended for a 30-day period. However, this suspension will only take effect after a 90-day grace period, allowing Tesla time to bring its operations into compliance.

The DMV highlighted that Tesla's Autopilot and Full Self-Driving (FSD) features are, in essence, advanced driver-assistance systems that still necessitate constant supervision from the driver. Contrary to this, Tesla's marketing materials have given the impression that its vehicles are capable of full autonomous driving, an assertion that breaches California's consumer protection regulations.

In response, Tesla clarified that it has consistently made it clear that its vehicles have not yet attained full autonomous driving capabilities and still require the driver's active oversight.