Tesla Faces Potential License Suspension in California
Tesla (NASDAQ: TSLA) risks losing its license to sell vehicles in California for 30 days following a false-advertising lawsuit from the Department of Motor Vehicles (DMV). The case revolves around misleading advertising related to Tesla’s Autopilot and full self-driving (FSD) capabilities. A court hearing is scheduled for this week, which could significantly impact Tesla’s third-quarter deliveries, particularly in the largest EV market in the U.S.
The lawsuit has been ongoing since 2021, with the DMV investigating potential misleading advertising practices. A license suspension could pose severe financial implications for Tesla, especially as the company had planned to boost sales in Q3 with various discounts and incentives, including a $7,500 lease incentive and additional offers for specific demographics.
