California Considers License Suspension for Tesla Due to FSD Claims, Gerber Declares 'The Days Are Over,' Munster Calls Decision 'Absurd' | Intellectia.AI
California Considers License Suspension for Tesla Due to FSD Claims, Gerber Declares 'The Days Are Over,' Munster Calls Decision 'Absurd'
Written by Emily J. Thompson, Senior Investment Analyst
Court Ruling Impact: A California court has suspended Tesla's license to sell vehicles for 30 days due to misleading claims about its Full Self-Driving technology, requiring policy changes within 90 days to avoid further suspension.
Analyst Reactions: Ross Gerber criticized Tesla's FSD claims, stating that the era of misleading terminology is over, while Gene Munster called the court's decision "absurd," arguing that drivers are already warned to remain attentive when using Autopilot.
Tesla's Market Position: Despite the legal challenges, Tesla's stock value has surged, making it the most valuable automaker globally, surpassing $1.58 trillion, significantly ahead of competitors like Toyota and BYD.
Stock Performance: Tesla's stock (TSLA) saw a decline of 4.62% to $467.26 at market close but rebounded slightly by 0.46% in after-hours trading, indicating ongoing market interest despite the recent court ruling.
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
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.
