California Vs. Tesla: Judge Denies EV Giant's Dismissal Plea Over DMV's 'Misleading' Self-Driving Claims
Portfolio Pulse from Anan Ashraf
A California administrative judge has denied Tesla's request to dismiss claims by the state's DMV alleging the company misled consumers about its self-driving capabilities. The DMV's accusations will be formally reviewed on September 9. This could impact Tesla's ability to sell vehicles in California and may require compensation to vehicle owners.
June 11, 2024 | 8:06 am
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Tesla faces legal challenges as a California judge denies its request to dismiss DMV claims of misleading self-driving capabilities. A formal review is set for September 9, which could impact Tesla's sales in California and require compensation to vehicle owners.
The denial of Tesla's dismissal request by the judge means the company will have to face the DMV's claims in a formal review. This could lead to significant regulatory and financial repercussions, including the potential suspension of Tesla's license to sell vehicles in California and compensation to vehicle owners. The legal uncertainty and potential penalties are likely to negatively impact Tesla's stock in the short term.
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