Tesla’s Self-Driving Advertising Called Out As Misleading To Consumers

Connecticut Sen. Richard Blumenthal and Massachusetts Sen. Ed Markey have requested that the Federal Trade Commission investigate Tesla (TSLA) over “serious concerns” about the allegedly misleading advertising of its Autopilot and Full Self-Driving (FSD) features.

In the letter that was sent on Wednesday, the senators asked FTC Chair Lina Khan to open an investigation into the electric carmaker for “potentially deceptive and unfair practices” of the advertising and marketing of the driving automation technologies and to take appropriate enforcement action to “ensure the safety of all drivers on the road.”

Blumenthal and Markey accused Tesla of repeatedly overstating the capabilities of its vehicles, which they told Khan in the letter, “increasingly pose a threat to motorists and other users of the road.”

In the letter, the senators cited a 2019 YouTube video from Tesla entitled “Full Self-Driving,” saying, “We fear that Tesla’s Autopilot and FSD features are not as mature and reliable as the company pitches to the public.”

They also said that Elon Musk has boasted about the self-driving technologies, citing instances in July 2020 and January 2021, where the Tesla CEO claimed to consumers that “Tesla vehicles would soon reach Level 5 autonomy, or full automation.”

Blumenthal and Markey said, “Unfortunately, Tesla’s advertising and marketing is reaching a large audience: the “Full Self Driving” video has been viewed more than 18 million times. While Tesla has buried qualifying disclaimers elsewhere on their website, the link in the video’s caption redirects to a purchasing page that fails to provide additional information about the true capabilities of the vehicle.”

“Tesla drivers listen to these claims and believe their vehicles are equipped to drive themselves – with potentially deadly consequences,” they added.

The senators concluded the letter by saying, “Tesla and Mr. Musk’s repeated overstatements of their vehicle’s capabilities – despite clear and frequent warnings – demonstrate a deeply concerning disregard for the safety of those on the road and require real accountability. Their claims put Tesla drivers – and all of the travelling public – at risk of serious injury or death. In light of these concerns, we urge you to swiftly open an investigation into Tesla’s repeated and overstated claims about their Autopilot and Full Self-Driving features and take appropriate enforcement action to prevent further injury or death as a result of any Tesla feature.”

The letter from the senators follows the start of a formal investigation by the National Highway Traffic Safety Administration on Monday into Tesla’s Autopilot system. The agency announced in public documents that it had identified 11 crashes, where Tesla’s Autopilot was engaged since 2018.

As of Wednesday at 2:13 p.m. ET, shares of Tesla were trading at $687.68, up $21.97, or 3.30%.