Tesla Shares Drop Amid Misleading Marketing Ruling
Tesla Inc (NASDAQ: TSLA) shares fell 4.6% on Wednesday, paralleling declines in the S&P 500 and Nasdaq Composite, which dropped 1.2% and 1.9%, respectively. The downturn followed a record high on Tuesday and was influenced by the California DMV’s recent ruling that Tesla misled consumers with its marketing of driver-assistance features such as “Full Self-Driving Capability” and “Autopilot.”
California DMV Ruling and Consequences
The California DMV has given Tesla 60 days to rectify its misleading marketing language or risk a 30-day suspension of its dealer license. This comes after an administrative judge found that Tesla’s marketing did not align with the capabilities of its driving features, prompting investor concerns about the company’s long-term viability.
