Tesla Inc. is set to face off with the California Department of Motor Vehicles over claims that the company has exaggerated the capabilities of its Autopilot and Full Self-Driving technology and misled consumers.

The largest EV market in the US alleges that the largest EV manufacturer is misleading drivers with its autonomous claims.

Tesla Inc.’s core car-making business is facing a deteriorating outlook, providing a major test of Chief Executive Officer Elon Musk’s ability to lift the stock price with his vision

Elon Musk made this statement during the Tesla Q2 2025 earnings call that came alongside its earnings results this week. The robotaxi service has been made available in limited capacity in Austin, Texas,

Tesla is fighting cases in Miami and California alleging it dangerously misled consumers about its Autopilot technology, including the driver in a fatal crash.

Tesla reported Wednesday that both revenue and profits fell in the second quarter of 2025 compared to a year earlier.

Before the opening, Musk shared a drone shot of the new diner. In an accompanying comment, he said that if this first Tesla Diner proves popular, the company will open more of them “in major cities around the world as well as at Supercharger sites on long distance routes.”