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BusinessBusiness Reports

Tesla faces the “self-driving illusion”: a legal crisis threatens its leadership in America

Consumer deception under scrutiny

محمد يسري
Last updated: 20/12/2025 5:28 am
Mohammed Yossry
محمد يسري
ByMohammed Yossry
News Editor
Mohammed Yousry, editor at Voice of Emirates News Agency, Cairo office, is a journalist and researcher specializing in Islamic heritage and extremist groups.
- News Editor
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3 Min Read
Tesla faces the "self-driving illusion"
Tesla confronts Elon Musk's self-driving illusion (Photo/Voice of Emirates)
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California, USA – Tesla is facing one of its most complex legal crises in the United States, following an official acknowledgment of flaws in the way it promotes self-driving systems.

Highlights
  • Marketing terms that clash with reality
  • Final deadline and threat of license revocation
  • Tesla’s defense and the rise of class-action lawsuits
  • The future of artificial intelligence in the automotive sector

This admission opened the door to regulatory investigations and lawsuits accusing the company of misleading consumers.

This concerns the true capabilities of its cars, which puts its technical reputation at stake.

Marketing terms that clash with reality

According to the Associated Press, the California Department

of Motor Vehicles concluded that Tesla used terms such as “autopilot”;

“Full Autonomous Driving” (FSD) gives users the illusion that cars

are capable of driving without any human intervention.

However, the current technological reality confirms that these systems still require constant monitoring,

which regulatory bodies consider to be marketing deception that warrants accountability.

Final deadline and threat of license revocation

In a related context, the Wall Street Journal reported that the California

regulator had given the company a deadline to amend its advertisements.

Accordingly, authorities warned that non-compliance could lead to

the temporary suspension of Tesla’s license to sell cars within the state.

Which represents the largest market for electric cars in America, which could cause the company huge financial losses.

Tesla’s defense and the rise of class-action lawsuits

For its part, Tesla admitted that the language in the advertisements was not precise enough.

However, she stressed at the same time that the user manual requires the driver to be vigilant.

Simultaneously, class-action lawsuits are mounting, accusing the company of excessive marketing;

Prosecutors link this marketing approach to the occurrence of tragic traffic accidents.

CNBC also noted that investigations have begun to extend to Elon Musk’s controversial statements.

This is about the near-complete elimination of the human element.

The future of artificial intelligence in the automotive sector

In conclusion, experts believe this case could set a regulatory precedent

that will change the rules of the game in the smart car sector.

Therefore, the US authorities’ move towards tightening control

will mean the end of the era of “unproven technical claims”.

This will ensure user safety and impose stricter standards on technology companies in the future.

TAGGED:American company "Tesla"legal crisisself-driving illusionTeslaVoice Of Emirates
SOURCES:Voice of Emirates
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