Over the years, Elon Musk has been known for making extravagant promises about the capabilities of Tesla cars, and for falling short.
California has finally called him out, via a lawsuit accusing Tesla of leading buyers to believe that its vehicles can operate autonomously — as self-driving cars — which they “could not and cannot do.” That amounts to false advertising, the Department of Motor Vehicles asserts.
The DMV is seeking to bar Tesla from selling cars in the state for at least 30 days. A five-day hearing in the case began Monday in Oakland before a DMV administrative law judge.
Professional investors, and most amateur investors as well, know how to devalue the optimism of corporate executives.
— Tesla, defending its unproven claims for its cars’ self-driving capabilities
A suspension of car sales in California would be a serious problem for Tesla, given that the state has generally accounted for some 30% of its U.S. domestic sales; the U.S. has accounted for roughly half of worldwide sales.
Through June this year, Tesla sales have fallen more than 18% in California compared with the same period a year ago, at least in part because of Musk’s increasingly visible engagement with right-wing politics, his online embrace of racist and antisemitic viewpoints, and the rampage through federal agencies conducted by his minions at DOGE.
Tesla’s EV market share in the state fell to 45.3% in the first half from 53.4% in the first half of 2024.
Tesla’s second-quarter results...
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