I don’t have a driver, is that a problem? Tesla robotaxis become fully autonomous in Austin
Tesla is currently testing fully driverless robotaxis in Austin, Texas, according to CEO Elon Musk.
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California regulators have postponed an injunction against Tesla Inc TSLA.O from sales in the company’s biggest U.S. market, giving the electric car maker time to address accusations of misleading marketing and overstating its self-driving features.
The Department of Motor Vehicles (DMV) adopted the judge’s recommendation to suspend Tesla’s manufacturing and sales license for 30 days, but immediately put it on hold, DMV Secretary Steve Gordon told reporters on Tuesday.
The suspension would come as a relief to automakers that, along with their peers, are struggling with a sharp drop in demand for electric vehicles as tax credits that were a major driver of sales expire.
At the same time, CEO Elon Musk has shifted Tesla’s focus not just to humanoid robots but to robotic taxis with self-driving technology, and much of the company’s valuation rests on those bets.
In 2022, the DMV accused Tesla of misleading consumers by using the brand names “Autopilot” and “Full Self-Driving (FSD)” for advanced driver assistance features in its vehicles. The regulator told Administrative Hearing Judge Juliet Cox that the names falsely suggested the cars would drive autonomously.
Tesla’s lawyers said at the hearing that the company has “clearly and consistently” explained that cars equipped with Autopilot and FSD software require supervision and are not self-driving.
Judge Cox recommended probation, which the DMV adopted, but it was put on hold Tuesday. Gordon said the agency wants to give Tesla “one more chance to improve the situation” and hopes it will “find a way to correct these misleading statements.”
The DMV suspended Tesla’s sales license for 90 days and its manufacturing license indefinitely.
To avoid the outage, the DMV said Tesla could either stop using the name “Autopilot” for its driver-assistance software or submit a statement confirming that its vehicles can operate without active human supervision.
The DMV said Tesla has until Feb. 14 to challenge the suspension or seek court review.
“This is a ‘consumer protection’ order regarding the use of the term ‘Autopilot’ when no customer has come forward with a problem. Sales in California will continue uninterrupted,” Tesla said in a statement.
The spokesperson did not elaborate on how Tesla knew there were no customer complaints. He also did not say whether Tesla would stop using the Autopilot name or whether it would appeal.
Autopilot helps Tesla cars accelerate, brake, and stay in their lane on the highway. Fully autonomous driving allows the vehicle to change lanes on city streets and follow traffic lights.
Gordon said the DMV zeroed in on the term Autopilot because Tesla made changes to its FSD during the process, without elaborating.
Tesla has added the term “supervised” to its passenger car FSDs. Some factories use an unsupervised version of the software to move cars from the assembly line to the shipping lot. The robotaxi service in Austin, Texas, also uses FSD, with passenger seat human safety monitors and remote support.
Reporting by Abhirup Roy in San Francisco and Chris Kirkham in Los Angeles. Additional reporting by Juby Babu in Mexico City and Mike Scarcella in Washington, DC. Editing: David Gregorio and Christopher Cushing
