A California administrative judge has rejected Tesla's bid to dismiss a lawsuit brought by the state's top regulator accusing Tesla of false marketing of its Autopilot system.
A California administrative judge on Monday set back Tesla as the electic carmaker fends off allegations from the state's top regulator that it falsely marketed its vehicles' self-driving feature. Judge Juliet Cox of the state Office of Administrative Hearings rejected Tesla's effort to have the lawsuit brought by the California Department of Motor Vehicles dismissed. The judge said that if the allegations are true, they would support enforcement action against Tesla.
If found liable, Tesla could have its license to sell vehicles in California suspended and be required to make restitution to Tesla owners who reside in the state. Tesla did not immediately respond to a request for comment. The DMV told Reuters its claims will be formally reviewed before the OAH on Sept. 9.
On May 15, a San Francisco federal judge rejected Tesla's bid to dismiss a proposed nationwide class action claiming it misled consumers into believing their vehicles would soon have self-driving capabilities. Tesla, whose CEO Elon Musk relocated its corporate headquarters from Palo Alto in California to Austin, Texas in 2021, has faced federal probes into whether its self-driving technology might have contributed to fatal car crashes.
In April, Tesla reached a settlement in a lawsuit over a 2018 fatal crash that killed an Apple engineer who was behind the wheel of his Model X while on Autopilot, when the car swerved into a barrier on a highway near San Francisco. Federal prosecutors are separately examining whether Tesla committed fraud by misleading investors about self-driving, Reuters reported.
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