The California Department of Motor Vehicles is investigating Tesla over CEO Elon Musk’s claims about the automaking company’s Full Self-Driving technology (FSD), the LA Times reports.
It comes less than a week after Tesla engineers privately told the DMV that their CEO had exaggerated the capabilities of the FSD system on social media.
The FSD is a $10,000 option for Tesla cars and promises to be fully autonomous as a self-driving car.
According to Autopilot software director CJ Moore, Tesla cars currently have Level 2 autonomy, meaning they still have limited autonomy on a 5-step scale, with L5 being the highest.
The DMV has the power to punish any car company that misleads its customers through false advertising under the Lanham Act.
Such penalties could include suspension or revocation of Tesla’s vehicle use permits and its manufacturing and dealer licenses.
For drivers, a revocation would mean that their cars can be removed from a public road by the authorities if the FSD feature is activated.
Tesla is facing a long list of lawsuits over its self-driving systems.
It is currently embroiled in nearly two dozen NHTSA investigations, and the FTC is investigating allegations against the company for fraudulent marketing.
For more information, read the original story from Engadget.