Tesla is facing a potential class-action lawsuit in California as regulators accused the automaker of falsely advertising its full self-driving cars.
According to a Bloomberg report on Monday, Tesla failed to dismiss a proposed lawsuit over supposed false statements about its autopilot and self-driving systems.
The court decision was in response to Tesla filing a motion to dismiss the case from the California Department of Motor Vehicles because the advertisements on the autopilot system fall under free speech.
The California DMV, however, argued that Tesla only started refuting claims in 2022 as more lawsuits surface, while its CEO Elon Musk continues to promote Tesla cars with "full self-driving features."
The ruling came amidst federal and regulatory bodies currently investigating Tesla following reports of road accidents involving its "full self-driving" system.
Regulators Crack Down on Tesla's Growing Road Accidents
In a safety report last April, the National Highway Traffic Safety Administration disclosed that Tesla's autopilot system has already caused at least 13 deaths and several more injuries since August 2021.
The NHTSA claimed the road accidents were due to a "critical safety gap" in the company's driving system as drivers were led to believe that the "automation has greater capabilities than it does."
The investigation was prompted by increasing safety concerns about Tesla's cars following a road incident in 2018 that killed an Apple engineer.
The report came as the NHTSA launched another probe into Tesla recalling 2 million EVs to fix an autopilot issue.
Tesla Remains Top Pick Among EVs
Despite ongoing investigations and lawsuits against the company, Tesla remains a top pick among EVs currently dominating the industry.
Its controversial Cybertruck even placed second as the second-best-selling EV pickup last March, according to the latest S&P Global Mobility data via Automotive News.
The company even retained top positions in California despite a continuous decline in new EV registrations in the state.
