The company is being sued for misleading the public by calling its features "Autopilot" and "Full Self- Driving."
According to the complaint filed in a San Francisco federal court this week, Musk has been deceiving his customers by telling them that they will be able to drive autonomously soon.
Musk has been promising self-driving cars every year for the last three years. It's definitely true. Is it possible? No luck so far.
The driver assistance features still need active driver supervision from a "fully attentive" driver, despite the fact that they are not fully self-sufficient today.
The lawsuit argued that Musk and the company made promises to generate excitement and increase sales.
"Despite its best efforts,Tesla has yet to produce anything even remotely approaching a fully self- driving car," said Matsko.
The drivers who have been testing the unfinished versions of the Full Self-Driving software have found "myriad problems."
California's Department of Motor Vehicles has filed complaints in the past. The electric automaker is accused of putting out false or misleading ads on its website.
The National Highway Safety Transportation Administration is investigating dozens of crashes involving cars and technology.
Stormclouds are gathering over the company's self driving efforts and it may take delivering on its outsizes promises to get them to stop.
Drivers are accusing the company of false self-driving claims.
There is more on the issue of the bug that was pointed out in the trial.