Tesla (TSLA) might lose its right to sell cars in California amid false advertising lawsuit
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.
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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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).
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Sunrun is putting tens of thousands of home batteries to work in Puerto Rico as the island’s electric grid faces a summer of high temperatures and energy shortfalls.
The company says it’s now dispatching energy from over 37,000 residential batteries to help grid operator LUMA keep the lights on. That stored power is being used to prevent rolling blackouts when demand spikes and centralized power plants can’t keep up.
Sunrun’s emergency power contribution has grown more than tenfold since last summer. LUMA expects more than 75 energy shortfall events between now and October, with each dispatch sending electricity to the grid for four consecutive hours. During several recent evenings, Sunrun and other virtual power plant (VPP) operators provided enough energy to offset a 50-megawatt generation gap, LUMA said.
Sunrun CEO Mary Powell said Puerto Rico’s aging infrastructure and intense weather patterns make home battery support increasingly critical:
It’s going to be a very difficult summer, which is why Sunrun has ramped up our dispatch capabilities, using tens of thousands of home batteries to support the grid and people of Puerto Rico.
She added that distributed power plants like Sunrun’s serve the same role as natural gas peaker plants – offering fast, reliable power during high-demand moments – but with clean energy.
Sunrun customers enrolled in the VPP will get paid too. Each participating battery earns about $200 minimum for the season, and customers who allow more of their stored energy to go to the grid earn even more. Sunrun also earns revenue for operating the VPP.
Read more: The US’s largest virtual power plant now runs on 75,000 home batteries
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Volkswagen is advertising ID.4 leases starting at just $99 a month. It’s hard to find any car lease these days for under $100 a month, but for $45,000 electric SUV, it’s almost unheard of.
Volkswagen offers ID.4 leases as low as $99 a month
The Volkswagen ID.4 was the third top-selling EV in the US in January after the 2025 model year went back on sale.
Volkswagen’s electric SUV starts at $45,095 with an EPA-estimated driving range of 291 miles. It’s available in five different trims: Pro, AWD Pro, Pro S, AWD Pro S, and AWD Pro S Plus.
The base 2025 VW ID.4 Pro RWD is equipped with 282 hp from a single rear electric motor. Inside, it features a 12.9″ infotainment system with Android Auto and Apple CarPlay support, heated front seats, dual-zone climate control, and Volkswagen’s new ID.Cockpit digital instrument display.
Upgrading to the AWD version will gain a tow hitch and an additional 53 hp, for a combined maximum of 335 hp. The added power comes at the cost of some range, with an EPA-estimated range of 263 miles.
Volkswagen was already offering 2025 ID.4 leases as low as $129 a month, but some dealers are listing it for even less this month.
A California dealership, Volkswagen of Garden Grove, has the 2025 ID.4 Pro RWD listed for lease at just $99 per month. The offer is for 24 months with $2,995 down. According to the dealer, the offer includes a $5,000 cash back bonus, good on a new ID.4 purchase or lease.
We thought the 2025 Hyundai IONIQ 5 was a good deal with leases starting at just $179 per month, but for $99, now that’s a steal.
Looking for deals on the Volkswagen ID.4 near you? You can use our link to find and view offers on the 2025 Volkswagen ID.4 in your area (via a trusted affiliate link)
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