Tesla, Inc TSLA is reportedly facing a potential ban on selling its "full self-driving" technology in Britain as new driverless car laws are likely introduced by the Department for Transport, preventing carmakers from labeling vehicles as "self-driving" unless they meet strict government standards.
The upcoming Automated Vehicles Bill, expected by 2024, will regulate terms like "self-drive" and "driverless" to avoid misleading marketing, the Telegraph reports.
Despite its name, Elon Musk helmed electric car giant's "full self-driving" feature requires driver monitoring and is considered an assistance system, implying it's unlikely to meet the U.K.'s stringent approval criteria. The company has been selling this optional upgrade globally, but it's only been activated in North America in a test version. The new U.K. regulations, which are likely to be enforced between 2024 and 2025, will also cover the marketing of these technologies.
Tesla has been promoting its cars with "Full Self-Driving Capability" since 2016 and charges a significant fee for this feature in the U.K., though it's not activated pending regulatory approval.
The company has been preparing to launch its advanced self-driving systems in the U.K. and Europe but faces legal and regulatory hurdles.
In the U.S., Tesla has faced investigations over its Autopilot and Full Self-Driving systems, including allegations linked to accidents.
Price Action: TSLA shares traded higher by 0.34% at $236.24 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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