California passes law banning Tesla from calling software FSD

December 25, 2022 by admin 33 Comments

By Johnna Crider

Posted on December 23, 2022

California passed a new law banning Tesla from calling its software Full Self-Driving (FSD). Although Tesla has never claimed that FSD was fully autonomous, the electric–maker is developing the technology for fully autonomous vehicles. Until its vehicles are fully autonomous, drivers must be alert and ready to take over at all times when engaging FSD or Autopilot.

California lawmakers, however, disagree with the labels of FSD. Senate Bill 1398 was one of the hundreds that Governor Newsom signed into law. The new law takes effect in 2023 and specifically targets Tesla’s name for its software. The bill was sponsored by Senate Transportation Committee Chair Lena Gonzalez, who claimed that Tesla falsely advertised its tech and that doing so was a safety issue.

The bill was sponsored after the California Department of Motor Vehicles claimed that Tesla’s FSD was “false advertising.”

An excerpt from the new law reads as follows:

“A dealer or manufacturer shall not sell any new passenger vehicle that is equipped with any partial driving automation feature or provide any software update or other vehicle upgrade that adds any partial driving automation feature, without, at the time of delivering or upgrading the vehicle, providing the buyer or owner with a distinct notice that provides the name of the feature and clearly describes the functions and limitations of the feature.”

“A manufacturer or dealer shall not name any partial driving automation feature, or describe any partial driving automation feature in marketing materials, using language that implies or would otherwise lead a reasonable person to believe, that the feature allows the vehicle to function as an autonomous vehicle, as defined in Section 38750, or otherwise has functionality not actually included in the feature. A violation of this subdivision shall be considered a misleading advertisement for the purposes of Section 11713.”

On its website on Full Self-Driving Capability, Tesla says that all new vehicles have the hardware needed in the future for FSD.

“The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.”

“The future use of these features without supervision is dependent on achieving reliability far in excess of human drivers, as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions.”

“As these self-driving capabilities are introduced, your car will be continuously upgraded through over-the-air software updates.”

FSD Beta saved me from a head on collision today. Driver of the vehicle fell asleep. @elonmusk @WholeMarsBlog @teslaownersSV @WhamBaamYT pic.twitter.com/PS4rO2tZnO

— Pushing Buttons CO (@CO_MDL3) September 29, 2022

In November, a Tesla owner involved in an accident on Thanksgiving Day claimed that FSD malfunctioned, however, police are still investigating the driver’s claims. In August, Tesla’s Autopilot Software Director, Ashok Elluswamy, shared data showing how Tesla’s Autopilot software prevents around 40 crashes daily that would have been caused by sudden unintended acceleration. Several owner accounts are crediting Autopilot and FSD for saving their lives.

Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.

Your feedback is welcome. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.

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