According to Sawyer Merritt, a California judge ruled that Tesla misled customers regarding its AI-powered Autopilot features, despite no customer complaints being filed (source: Sawyer Merritt on Twitter, Dec 17, 2025). This legal development highlights increasing regulatory scrutiny of AI marketing claims in the autonomous vehicle sector. Tesla affirmed that its California sales will continue without interruption, showcasing the resilience of its AI-driven business model. The ruling underscores the need for transparent communication about AI capabilities, presenting both compliance challenges and opportunities for competitors to differentiate through clear, responsible AI disclosures.