Judge mandates Tesla to implement significant changes or cease sales in California.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: Yahoo Finance
Tesla's FSD Misrepresentation: Tesla's Full Self-Driving (FSD) was ruled misleading by a California court, which stated that the term implies a level of autonomy that the technology does not provide, leading to a potential 30-day suspension of Tesla's selling and manufacturing licenses if deceptive claims are not corrected.
Regulatory Scrutiny: The California DMV's complaint against Tesla highlighted concerns over consumer protection, as the judge noted that consumers might mistakenly believe FSD allows for safe driving without human attention, which is not the case.
NHTSA Investigations: The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into 2.88 million Teslas equipped with FSD, following reports of traffic violations and crashes, including incidents where vehicles failed to stop at red lights.
Safety Concerns: Reports indicate that FSD may induce unsafe driving behaviors, such as running red lights and improper lane changes, raising questions about the technology's reliability and the need for driver supervision.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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