DMV Says Tesla's Full Self-Driving Name is False Advertising; Tesla Responds

Tesla has been improving its FSD features since introducing it in 2016

Tesla

Elon Musk bought, gutted, and revived Twitter, now X, for many reasons, but one of the biggest was allowing free speech. Now, Tesla has positioned its defense against the California Department of Motor Vehicles (DMV) on the grounds of free speech.

Tesla asserts that the DMV's accusations of false advertising, especially regarding its Full Self-Driving (FSD) feature, infringe upon its First Amendment rights. This defense follows years after the introduction of Tesla's automated driving features.

Background of the Dispute

The legal skirmish traces back to the DMV's investigation, initiated in May 2021. The agency accuses Tesla of misleading claims about its Autopilot and Full Self-Driving capabilities, suggesting that these systems could enable entirely autonomous trips without driver intervention. Tesla, however, contends that it has been transparent about the limitations of these systems in its owner's manuals and in-car notifications.

Tesla argues the DMV's lack of action against using terms like "Autopilot" and "Full Self-Driving Capability" since 2014 and 2016 amounts to an implicit approval. The company claims that this inaction over the years should now preclude the DMV from pursuing legal action.

Potential Consequences for Tesla

The stakes are high for Tesla in this legal dispute. Should the DMV prevail, Tesla could face the revocation of its California manufacturer's license and possibly be required to compensate customers who have suffered financial losses due to the alleged false advertising.

This legal tussle has significant implications for Tesla, particularly in California, its largest market in the United States. The outcome of this case could influence not only Tesla's business operations but also customer trust and perception of the brand's technology offerings.

Amidst this legal confrontation, Tesla also faces scrutiny from the National Highway Traffic Safety Administration (NHTSA) over safety concerns related to its Autopilot and Full Self-Driving features. These investigations are part of a broader examination of the safety and reliability of driver assistance technologies in the evolving landscape of autonomous vehicles.

Tesla continues to refine its driver assistance technologies amidst these challenges, with the removal of ultrasonic sensors in 2022 marking a notable change in its approach. FSD version 12 is rolling out to employees, introducing a major shift in autonomous technology. Instead of hundreds of thousands of coding lines, the new system relies on neural networks. As the legal and regulatory landscape evolves, Tesla's journey with its pioneering technologies will remain in the spotlight and under constant scrutiny.

Follow

Follow

Follow

Elon Musk Takes Over Tesla Sales For North America and Europe

Not a Tesla App

Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.

This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.

New Leadership Structure

According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.

Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.

For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.

Tackling the Sales Slump

The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.

This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.

With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.

The Rise of Tom Zhu

A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.

His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.

Wrap Up

This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.

Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.

Follow

Follow

Follow

Tesla Shares Q2 2025 Numbers: Production and Deliveries Up Over Last Quarter

Not a Tesla App

Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.

Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.

Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.

Breakdown by Model

The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.

Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.

Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.

Context and Market Response

While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.

Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.

Looking ahead, all eyes are on Tesla’s Robotaxi network, the Cybercab, and the more affordable model, which is slated to be released later this year.

Follow

Follow

Follow