This suit has been brewing for some time. The state DMV started investigating Tesla for possible misleading advertising in 2021 and then sent an official inquiry to the automaker roughly a year later.

Tesla's robotaxi ambitions in California face regulatory hurdles as the CPUC clarifies that autonomous vehicle testing and public transportation are prohibited without a human driver. While Tesla holds a permit for a private car service with drivers,

Tesla is trying to expand its robotaxi service, which so far is only being tested in Austin, Texas, to additional markets.

Tesla's registrations in the West Coast state fell more than 20% in the second quarter compared with the previous year, according to new data.

The Texas-based EV manufacturer could be subject to punishment for its advertising practices in the Golden State.

Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground.

Tesla's claims of automous driving may have convinced many buyers, but governments across the world are more sceptical of the technology.

The earnings report covers Tesla’s finances for April, May and June — a period that overlapped with Musk’s tenure in the White House. Musk left his government job May 30.