Tesla’s DMV self-driving false advertising case must go to court, CA judge rules
A case in California court over whether Tesla deceived customers with its statements about full self-driving technology will go forward, bucking Tesla’s attempts to get the case to be thrown out before trial, a California judge ruled today.
The California Department of Motor Vehicles (DMV) started investigating Tesla for misleading FSD ads in 2021. As it turns out, 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.
That response – which included Tesla’s claim that it has been allowed to lie about FSD for so long that it should get to keep going – apparently wasn’t persuasive enough for the courts, as it turns out the case is going to court now.
Today, an administrative judge ruled that the DMV case will head to a full trial.
Tesla had also argued that the case violates its free speech rights, which famously do not apply to false advertising, as has been recognized time and time again by courts.
This is the second time in a month that Tesla has failed to get an FSD false advertising case thrown out before trial. In May, a judge ruled that Tesla must face a class action over failure to deliver on automation claims.
And Tesla is also facing a probe from the Securities and Exchange Commission over whether it committed securities fraud in its FSD advertising.
At issue is Tesla’s long history of referring to its driver-assist software as “Autopilot” and “Full Self-Driving.” These two pieces of software are related but distinct, with autopilot being an earlier, less-capable, and less-expensive version than FSD. FSD currently costs $8,000, though prices have changed over time and some owners paid up to $15,000 for it.
The argument is that the first feature name, Autopilot, has a colloquial understanding that a driver need not pay attention to the road. However, Tesla has long stated that “autopilot” is meant to refer to the similar piloting software on airplanes, which still require attentive pilots to be at the helm.
Full Self-Driving is a much clearer name, though, which doesn’t just imply but flatly states that the car will be able to drive itself fully. Tesla CEO Elon Musk has repeatedly claimed that Teslas will be able to drive themselves in the near future for over a decade now, but those claims have not materialized.
While FSD has been improving and more capabilities have been added over that time, it still cannot drive itself and requires active driver attention.
Both of Tesla’s systems – and driver assist systems from almost every other automaker – would qualify as “level 2” systems on the SAE’s classification of self-driving systems, despite FSD’s higher capabilities than Autopilot. Currently, only one consumer system on US roads can do Level 3, the Mercedes Drive Pilot on the EQS, and self-driving taxis like Waymo are Level 4.
Tesla has recently started calling its system “Full Self-Driving (Supervised),” emphasizing that a driver still needs to be in the seat and supervising the vehicle, even if they don’t need to actively operate it. This language change happened alongside Tesla giving every US owner a free FSD trial for one month in April, which Musk said would happen as soon as FSD is “super smooth.”
So, perhaps the company wanted to emphasize to newer drivers that they still need to be in the car to use it – or perhaps the language change was in light of the two false advertising cases that are currently working their way through the courts.
While we don’t know the outcome of these FSD cases yet, some owners have had success bringing individual false advertising claims to Tesla over FSD.
An owner in the UK was paid ~$10k over Tesla’s failure to deliver software which he had paid for, and Tesla was ordered to upgrade an owner in the US’ computer for free, after Tesla had charged him for hardware he already paid for. Tesla still continues this practice of charging certain FSD subscribers for hardware which they already paid for.
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Environment
Home solar/battery 30% incentive is over 180 days after Trump signs it – latest Senate bill
In the latest Senate version of the GOP’s budget and tax bill, better known as Trump’s Big Beautiful Bill, the 30% tax credit for home solar and batteries is going to be over 180 days from the time the President signs it.
Other tax credits for utility-scale solar and wind projects are going to be completely phased out by 2028.
As expected, the Republican Party has been trying to remove incentives for renewable energy to clean its grid and achieve much-needed productivity expansions.
The main effort is through the new budget and tax bill, known as Trump’s ‘Big Beautiful Bill’, which was passed by the House last month. However, the bill is expected to evolve as it progresses through the Senate.
Under the version passed by Congress, the ITC (Section 25D), which offers a 30% tax credit for home solar and energy storage systems, was going to be completely phased out by the end of 2025.
The Senate has now released the latest draft of the bill, which includes more details about how it plans to eliminate renewable energy incentives.
According to the latest language, the home solar and battery incentive would end 180 days after it is enacted.
Here’s the latest language:
(a) IN GENERAL.—Section 25D is amended by striking subsection (h) and inserting the following new subsection:
‘‘(h) TERMINATION.—
‘(1) IN GENERAL.—The credit allowed under this section shall not apply with respect to any expenditures made after the date described in paragraph (2).
‘‘(2) APPLICABLE DATE.—The date described in this paragraph is the date which is 180 days after the date of enactment of this paragraph.’’.
It’s not exactly clear when Trump could sign the bill. It is still contested by some Republicans, who hold the majority in the Senate, but killing the
The rumor is that they are trying to get it on his desk by July 4, which would mean the end of the tax credit by December 31st and no real change compared to the House bill at this level unless there are further delays on passing the bill in the Senate, which is not out of question.
This is creating a new level of urgency for home solar and battery installations to get systems deployed and activated by the end of the year.
The only good news with the current Senate version of the bill compared to the House’s is for larger-scale utility solar and battery projects, which generally fall under Section 48E of the Code (ITC).
There’s now a planned phase out with 60% of the incentive in 2026 and 20% in 2027 rather than ending by 2025:
- Solar and wind facilities would be eligible for the full ITC or PTC, as applicable, if construction begins in 2025.
- If construction begins in 2026, such facilities would be eligible for 60 percent of the otherwise available ITC or PTC.
- If construction begins in 2027, such facilities would be eligible for 20 percent of the otherwise available ITC or PTC.
- Thereafter, such facilities would not be eligible for the ITC or PTC.
Those incentives are instead going to be directed toward hydropower, nuclear and geothermal energy through 2036.
Electrek’s Take
Some good, some bad here. Obviously, this is a win for big corporations and the fossil fuel industry more than anything.
They don’t want decentralized energy production and storage, which is what the tax credit for residential solar power and energy storage systems is intended to incentivize.
The good news is that if you are a homeowner and you still don’t have solar, there might be time to still lock in an installation by the end of the year – though it is starting to be limited due to high demand.
EnergySage can help you go solar in a few clicks without getting any sales calls until you are ready to move forward. It’s a free service that will enable you to get quotes and compare them without any hassle. They work with a great number of solar installers and help you get the best price and best system for your home. Receive and compare solar quotes quickly on their website.
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Tesla is gearing up to start selling its upcoming Tesla Semi electric truck in Europe with a new hire to develop the market.
Tesla Semi is finally about to go into volume production in the US after being unveiled almost a decade ago.
The vehicle was unveiled in 2017 and was initially scheduled to enter production in 2019; however, the automaker delayed the program on several occasions.
Tesla unveiled a “production version” in 2022, but it was only produced in small batches. The Class 8 electric truck remains a rare sight in the US, with only a few dozen units in the hands of a handful of customers and a few more in Tesla’s internal fleet.
In January 2023, Tesla announced an expansion of Gigafactory Nevada to build the Tesla Semi in volume.
However, that plan was also changed and delayed. Tesla ultimately built a separate factory adjacent to Gigafactory Nevada, and production was delayed until 2025.
Earlier this year, Tesla completed the building and started working on the production lines. The automaker said that Tesla Semi production was expected to begin in late 2025 and ramp up to a capacity of 50,000 trucks per year.
Now, we learn that Tesla is starting to build an organization to sell the Tesla Semi in Europe.
Electrek found that Tesla hired a new leader to head business development for Tesla Semi in Europe.
Usuf Schermo announced on his LinkedIn last week that he joined Tesla as “Head of Business Development EMEA for Tesla Semi.”
Schermo, who holds a master in economic engineering, energy and ressources management from TU Berlin, has some experience with commercial electric vehicles.
He was the head of sales in Germany for Volta Trucks from 2022 to 2024. The company made the Volta One, a 16-tonne electric truck aimed at city deliveries.
Volta went bankrupted in 2023, but it got back in business with a restructuring in 2024, which didn’t last long as they were insolvent as of last month.
For the last year, Schermo has been leading sales for EVUM aCar, a German startup building a small commercial vehicle.
Now, he will develop the market for Tesla’s class 8 electric truck.
The European electric commercial truck market is much developed in the US with already some significant competition from Volvo with the Volvo FH Electric, Mercedes-Benz with the eActros 600, MAN with the eTGX, and several others.
The market is still young, but Volvo is already emerging as a leader with an estimated more than 3,000 electric trucks in operations in Europe.
With production only starting in the US toward the end of the year, Tesla is not likely to have an homologated version of the Tesla Semi in Europe until later in 2026.
Tesla has already announced plans to build the Tesla Semi in Europe at Gigafactory Berlin.
The automaker currently only produces the Model Y at the German factory and its sales are crashing across Europe.
Electrek’s Take
I keep saying to Tesla fans that hate me: I track both Tesla hires and departures. I try to report on both, but the former are much more scarce than the latter these days.
This is one of the few significant hires of the last years at Tesla and say “significant” because it shows Tesla is preparing to sell the Tesla Semi in Europe because this is clearly not an executive level role.
Over the last year and since the great purge of talent in April 2024, Tesla has almost been exclusive promoting from within at higher director and VP levels rather than hire from outside.
As for the Tesla Semi in Europe, it could work. Like I said, there’s already a lot of competition, but Tesla Semi is expected to have a longer range than everything else, which should attract buyers.
However, as we recently reported, it is expected to be much more expensive than what Tesla previously announced.
It could particularly useful for Gigafactory Berlin, which is at a real risk right now with Tesla’s sales crashing in Europe. Producing a new vehicle program there, and a commercial one that rely less on consumer perception, could help increase factory utilization.
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Environment
Shipping groups are starting to shy away from the Strait of Hormuz as Israel-Iran conflict rages on
An Islamic Revolutionary Guard Corps speed boat sailing along the Persian Gulf during the IRGC marine parade to commemorate Persian Gulf National Day, near the Bushehr nuclear power plant in the seaport city of Bushehr, in the south of Iran, on April 29, 2024.
Nurphoto | Nurphoto | Getty Images
Some shipowners are opting to steer clear of the strategically important Strait of Hormuz, according to the world’s largest shipping association, reflecting a growing sense of industry unease as the Israel-Iran conflict rages on.
Israel’s surprise attack on Iran’s military and nuclear infrastructure on Friday has been followed by four days of escalating warfare between the regional foes.
That has prompted shipowners to exercise an extra degree of caution in both the Red Sea and the Strait of Hormuz, a critical gateway to the world’s oil industry — and a vital entry point for container ships calling at Dubai’s massive Jebel Ali Port.
Jakob Larsen, head of security at Bimco, which represents global shipowners, said the Israel-Iran conflict seems to be escalating, causing concerns in the shipowner community and prompting a “modest drop” in the number of ships sailing through the area.
Bimco, which typically doesn’t encourage vessels to stay away from certain areas, said the situation has introduced an element of uncertainty.
“Circumstances and risk tolerance vary widely across shipowners. It appears that most shipowners currently choose to proceed, while some seem to stay away,” Larsen told CNBC by email.
“During periods of heightened security threats, freight rates and crew wages often rise, creating an economic incentive for some to take the risk of passing through conflict zones. While these dynamics may seem rudimentary, they are the very mechanisms that have sustained global trade through conflicts and wars for centuries,” he added.
The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world’s most important oil chokepoints.
In 2023, oil flows through the waterway averaged 20.9 million barrels per day, according to the U.S. Energy Information Administration, accounting for about 20% of global petroleum liquids consumption.
The inability of oil to traverse through the Strait of Hormuz, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays.
Alongside oil, the Strait of Hormuz is also key for global container trade. That’s because ports in this region (Jebel Ali and Khor Fakkan) are transshipment hubs, which means they serve as intermediary points in global shipping networks.
The majority of cargo volumes from those ports are destined for Dubai, which has become a hub for the movement of freight with feeder services in the Persian Gulf, South Asia and East Africa.
Peter Tirschwell, vice president for maritime and trade at S&P Global Market Intelligence, said there have been indications that shipping groups are starting to “shy away” from navigating the Strait of Hormuz in recent days, without naming any specific firms.
“You could see the impact that the Houthi rebels had on shipping through the Red Sea. Even though there [are] very few recent attacks on shipping in that region, nevertheless the threat has sent the vast majority of container trade moving around the south of Africa. That has been happening for the past year,” Tirschwell told CNBC’s “Squawk Box Asia” on Monday.
“The ocean carriers have no plans to go back in mass into the Red Sea and so, the very threat of military activity around a narrow important routing like the Strait of Hormuz is going to be enough to significantly disrupt shipping,” he added.
Israel-Iran conflict lifts freight rates
Freight rates jumped after the Israeli attacks on Iran last week. Indeed, data published Monday from analytics firm Kpler showed Mideast Gulf tanker freight rates to China surged 24% on Friday to $1.67 per barrel.
The upswing in VLCC (very large crude carrier) freight rates reflected the largest daily move year-to-date, albeit from a relative lull in June, and reaffirmed the level of perceived risk in the area.
Analysts at Kpler said more increases in freight rates are likely as the situation remains highly unstable, although maritime war risk premium remains unchanged for now.
Missiles launched from Iran are intercepted as seen from Tel Aviv, Israel, June 16, 2025.
Ronen Zvulun | Reuters
David Smith, head of hull and marine liabilities at insurance broker McGill and Partners, said shipping insurance rates, at least for the time being, “remain stable with no noticeable increases since the latest hostilities between Israel and Iran.”
But that “could change dramatically,” depending on whether there is escalation in the area, he added.
“With War quotes only valid for 48 hours prior to entry into the excluded ‘Breach’ area, Underwriters do have the ability to rapidly increase premiums in line with the perceived risk,” Smith told CNBC by email.
The Hapag-Lloyd AG Leverkusen Express sails out of the Yangshan Deepwater Port, operated by Shanghai International Port Group, on Aug. 7, 2019.
Bloomberg | Bloomberg | Getty Images
A spokesperson for German-based container shipping liner Hapag-Lloyd said the threat level for the Strait of Hormuz remains “significant,” albeit without an immediate risk to the maritime sector.
Hapag-Lloyd said it does not foresee any bigger issues in crossing the waterway for the moment, while acknowledging that the situation could change in a “very short” period of time.
The company added that it has no immediate plans to traverse the Red Sea, however, noting it hasn’t done so since the end of December 2023.
— CNBC’s Lori Ann LaRocco contributed to this report.
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