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Tesla (TSLA) might lose its license to sell cars in California amid false advertising lawsuit brought by the California DMV, which is looking to suspend Tesla’s right to sell cars in the US’ biggest EV market for 30 days.

The California DMV has been in a legal dispute with Tesla for years over the automaker’s advertising of its ‘Autopilot’ and ‘Full Self-Driving Capability’ advanced driver assistance (ADAS) systems.

The agency claims that Tesla is misrepresenting the capacity of its ADAS through the names themselves and how the company and the CEO markets them.

The California DMV started investigating Tesla for misleading advertising in 2021. We find out that the company was saying different things to the public than it was saying to the DMV. The DMV then sent an official inquiry to Tesla in 2022, asking for it to respond to the claim that it was creating incorrect perceptions about the capabilities of its system.

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The DMV has issues with the names of the features themselves, but it also brought up controversial statements from Tesla, such as:

“The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.”

And:

“From Home – All you will need to do is get in and tell your car where to go. If you don’t say anything, your car will look at your calendar and take you there as the assumed destination. Your Tesla will figure out the optimal route, navigating urban streets, complex intersections and freeways. To your Destination -When you arrive at your destination, simply step out at the entrance and your car will enter park seek mode, automatically search for a spot and park itself. A tap on your phone summons it back to you.”

Tesla’s response included a claim that it has been allowed to lie about FSD for so long that it should get to keep going, which wasn’t persuasive enough for the courts, as the case was allowed to move to trial last year.

The automaker is also arguing that its warnings to drivers to stay attentive at all times are enough to counter any misleading statements.

Now, things are heating up.

The court is holding a 5-day hearing on the case all week and the DMV is now trying to get Tesla’s dealer license suspended for a month:

The Department seeks an ordersuspending Respondent’s manufacturer and dealer licenses for not less than thirty (30) days, and seeks an order that Respondent pay restitution under Government Code § 11519.1, subdivision (a), in an amount to be determined in a subsequent hearing.

This would have devastating effect on Tesla’s performance this quarter as the automaker is expected to deliver a record number of cars in the US due to the imminent end of the federal tax credit and California is by far Tesla’s biggest market in the US.

Melanie Rosario, Commander–Sergeant, DMV Valley Area Command, is set to testif “regarding her investigations and findings regarding Tesla’s false and misleading statements in advertising its vehicles equipped with ADAS features” at the hearing this week.

The California DMV will also call Bryant Walker Smith to testify remotely as an expert witness. He is “a professor of law at the University of South Carolina, a voting member of the Society of Automotive Engineers’ (“SAE’s”) On-Road Automated Driving Standards Committee, and has been involved in industry and government use of the language of driving automation for almost 14 years.3 Professor Smith will testify regarding the language of driving automation.”

Electrek’s Take

This would be extremely bad for Tesla.

Tesla’s sales in the US in Q3 2025 is going to be a boon to a terrible year of declining sales. The end of the federal tax credit starting in Q4 is pulling forward a ton of demand into Q3.

A lot of that demand was going to come from California, which accounts for about a third of EV sales in the US.

It is Tesla’s biggest market in the US and where it has most capacity to deliver vehicles.

If its license gets suspended during this quarter, it will create a logistical nightmare where Tesla would have to try to deliver tens of thousands of vehicles out of state.

While this saddens me, as it will result in fewer EVs on the road, it might be the wake up call that Tesla needs to finally take seriously the giant liability that Elon Musk created for the company through the many lies about self-driving capabilities inside Tesla vehicles.

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Priority Glide launched as one of the lowest-cost Gates belt drive e-bikes

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Priority Glide launched as one of the lowest-cost Gates belt drive e-bikes

In a market full of complicated tech, sky-high torque specs, and smartphone apps to control an e-bike, New York-based Priority Bicycles is going in the opposite direction with the launch of its newest model: the Priority Glide, a lightweight, fuss-free e-bike that brings belt drive simplicity to the masses.

Unveiled yesterday, the Glide appears to be built for riders who want a clean, low-maintenance electric bike without the intimidating menus or mechanical clutter.

It sticks with the same game plan that has come to define Priority Bicycles: rolling out high-end bicycles designed to be almost entirely maintenance free, yet at prices well below the typical bike shop sticker shock.

In this case, with an MSRP of $1,799 plus a $400 off launch discount until August 4 (discount code RIDEAGLIDE), it also happens to be one of the most affordable electric bikes on the market featuring a Gates Carbon Drive belt system paired with an internally geared rear hub transmission. We’ve seen low-cost belt drive e-bikes before, but they are generally single-speed bikes.

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With the Priority Glide, you not only get the much-lauded maintenance-free Gates carbon belt drive system, but you also get the equally maintenance-free Nexus 3 rear hub transmission, which replaces a derailleur for simpler, cleaner, and hassle-free shifting – even at a stop.

The Glide slots in below Priority’s existing E-Classic Plus, maintaining the company’s signature style: classic lines, upright posture, and zero grease. The frame uses a dropped top tube for an easier step-over design, which strikes a balance between traditional geometry and easy on-off access. Add in dual-piston hydraulic disc brakes on 180mm rotors, 700c x 38mm puncture-resistant tires, double center kickstand for stable upright parking, front and rear LED lights, full composite fenders, and a thumb throttle, and you’ve got a commuter-friendly package designed to keep things simple, clean, and easy to ride on either pedal assist or throttle operation.

With a max payload of 300 lb (136 kg) and available in two different frame sizes, the Glide is designed to better fit a range of riders. And with two color offerings of blue and black, it’s also hoping to fit a range of tastes.

The Glide is powered by a 350W front hub motor paired with a 374Wh removable battery tucked into the downtube. Together, they help the bike reach a top assisted speed of 20 mph (32 km/h). Range is listed as 20 miles (32 km) on throttle or up to 60 miles (96 km) with pedal assist.

It’s a modestly powerful setup, but one that should be enough for neighborhood rides, errands, or a short daily commute. The reduced motor and battery size also help the bike tip the scales at just 49 lb (22.2 kg), making it one of the few sub-50 lb direct-to-consumer e-bikes on the market these days.

With the lower power motor, the somewhat lower capacity battery should last a bit longer, providing modest assist that doesn’t overwhelm. Riders get three pedal assist levels to choose from, at least when they’re not making use of that thumb throttle, and the bike’s Shimano Nexus 3-speed internal hub helps keep shifting smooth. One of the best features of an internally geared rear hub is that shifting can be done while standing still, such as when a rider has forgotten to downshift after a speedy section (which seems to happen at least once a week to me).

The other major advantage of internally geared hubs is of course that there’s no derailleur to fiddle with, no chain to lube (thanks to the belt drive), and no overly complicated electronic shifting. Just hop on, tap the throttle if you feel like cheating a hill, and cruise.

“Riding should be simple, enjoyable, and something people look forward to every day,” said Priority co-founder and CMO Connor Swegle. “Our goal with the Glide is to remove the barriers that keep people from riding more—whether that’s complicated maintenance, intimidating tech, or bulky designs.”

Electrek’s Take

I’ve become a big fan of Priority Bicycles since I bought my first one back in 2020. They’re well known for building with higher quality parts (they don’t rust because they use non-corroding hardware, for example), let alone the fact that they always opt for Gates belt drives and other high-end drive components. And the reason they can offer such good bikes at reasonable prices is because they offer a hybrid model. Founded and run by true cyclists, they have their traditional bike shop in Manhattan yet also operate as a direct-to-consumer company, allowing them to cut out the bike shop model and offer lower costs to consumers. In this case, they’ve demonstrated that advantage quite well with the Priority Glide.

In a world of carbon-framed fancy bikes that cost an arm and a leg, or torque monsters that can lay down a rubber snake in the bike lane, it’s refreshing to see a company lean into the simple joy of riding. The Priority Glide won’t win drag races or cross mountain ranges, but that’s not the point. It’s a clean, practical, approachable ride designed especially for folks who want an electric bike that looks and feels like a regular bike, but that doesn’t require the maintenance of a regular bike. And with parts like a Gates belt drive, nice hydraulic brakes, and a Shimano Nexus 3 at this price, it’s hard not to be impressed.

The cherry on top would have been a torque sensor, which would have had me over the moon, but hey – I guess they have to leave me something to whine about!

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New electric bike license scheme to be tested on school-aged riders

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New electric bike license scheme to be tested on school-aged riders

Get ready, children. There’s a new electric bike licensing scheme that will soon be tested as one of several methods designed to help educate young riders on responsible road use and combat the growing concern of dangerous e-bike riding among youths around the world.

Known as the Student Bicycle License Scheme (SBLS), the proposal in New South Wales, Australia, will operate as a trial of a new licensing program for electric bike riders. The program targets school-aged e-bike riders in response to a growing number of accidents and misuse cases involving young riders.

The pilot program will require students to complete an online training course and pass a knowledge test before being issued a digital license to ride an e-bike or e-scooter. The scheme is expected to launch later this year in select schools, and if successful, could pave the way for a broader rollout.

Schools in Sutherland and Newcastle have reportedly expressed interest in joining the program, which leaves it up to individual schools to decide how they wish to use the new license program. For example, they can make it mandatory for students who want to ride to school or use secured bicycle parking facilities at the school.

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Police in Sydney stop an electric bike rider (image via: Reddit)

The trial will initially focus on education rather than enforcement. Students who complete the course will receive a digital “ride-ready” credential, but there are currently no plans to introduce fines or penalties for unlicensed riders during the pilot phase. The government is partnering with road safety experts and schools to develop the training materials, which will cover speed limits, helmet use, sidewalk etiquette, and proper intersection behavior.

Australia’s National Transport Research Organisation is also reviewing current electric micromobility laws, with a report expected by the end of the year. The Queensland trial is seen as a possible blueprint for other regions facing similar safety concerns.

The announcement comes as electric bikes become increasingly popular among Australian youth, not just as toys, but as practical transportation to and from school, work, and social events. With that growth has come scrutiny – several high-profile crashes, some involving modified or overpowered e-bikes, have pushed lawmakers to act.

The same phenomenon is playing out around the world, including in Europe and the US, where young riders have increasingly taken to electric bikes as an alternative form of transportation, though one that has raised concerns around road safety among a young populace who has yet to learn the rules of the road.

Electrek’s Take

This is one of several school-level educational outreach programs we’ve seen pop up lately, and I think these are great ideas.

While the idea of requiring a license to ride an e-bike might sound extreme in some places, Australia’s approach here is education-first, and it could actually be a smart move. It also seems like the license is designed to be effective without being a burden. If you can grasp the knowledge, you can pass the test. And since many of the issues surrounding young e-bike riders arise from a general ignorance of road rules, this could be an effective solution. Teaching young riders the rules of the road before they hit the pavement might help reduce injuries and improve public perception of micromobility. Plus, the fact that it is a digital license means that there would presumably be fewer costs involved, which will hopefully allow the program to be free of charge and further reduce the burden of the licensing process.

Of course this won’t do anything for the “hooligan” riders who know the rules and simply don’t care, but that’s where enforcement has to step in as the heavy-handed partner to education.

I think this is a great example of balanced e-bike regulation. A measured mix of education and enforcement is key to ensuring e-bikes remain safe while taking advantage of their myriad benefits to the public. And hey, it sure makes a lot more sense than NYC trying to cut the speed of all electric bikes in half overnight.

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California set to BAN Tesla sales, Vietnam leads the way, and VW value tanks

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California set to BAN Tesla sales, Vietnam leads the way, and VW value tanks

The State of California is moving to ban the sale of Tesla cars amid claims that the company and its CEO, Elon Musk, have misled buyers about the self-driving capabilities of their cars. We’ve also got market-leading news out of Vietnam and a pricey, pricey lesson for one VW ID.Buzz buyer on today’s lesson-learning episode of Quick Charge!

We also ask what this might mean for the recent Uber/Lucid autonomous taxi tie-up and go through a full rundown of the fastest depreciating EVs on the market (and yes, there are four Tesla models in the top 10 … because the Cybertruck was too new to qualify).

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (most weeks, anyway). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


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