1 00:00:00,320 --> 00:00:04,760 It is Tuesday, February 24th, 2026 and we were looking at a 2 00:00:04,760 --> 00:00:08,640 story today that broke yesterday involving Tesla and the 3 00:00:08,640 --> 00:00:11,480 California DMV. Yeah, and it's, well, it's a bit 4 00:00:11,480 --> 00:00:14,560 of a puzzle when you actually map out the timeline of the last 5 00:00:14,560 --> 00:00:16,480 week. Right, because at first glance, 6 00:00:16,480 --> 00:00:18,760 if you just read the headlines, you'd think it looks like 7 00:00:18,760 --> 00:00:21,520 standard corporate litigation. You know, a company suing a 8 00:00:21,520 --> 00:00:23,600 regulator. Which happens every day, yeah, 9 00:00:23,840 --> 00:00:26,080 but the strategy here is totally inverted. 10 00:00:26,800 --> 00:00:30,200 Usually you fight a legal battle to avoid a penalty, but here the 11 00:00:30,200 --> 00:00:31,720 penalty was already off the table. 12 00:00:31,720 --> 00:00:33,760 Exactly. So let's set the scene for you. 13 00:00:34,200 --> 00:00:37,720 The headline is that Tesla filed A lawsuit against the California 14 00:00:37,720 --> 00:00:40,280 Department of Motor Vehicles yesterday, Monday. 15 00:00:40,800 --> 00:00:43,760 They are demanding that a state court overturned A ruling that 16 00:00:43,760 --> 00:00:47,560 labeled them a false advertiser. Which is a very heavy label. 17 00:00:47,800 --> 00:00:50,680 That's not just a passing criticism from a regulator. 18 00:00:50,760 --> 00:00:53,080 That is a formal legal classification, right? 19 00:00:53,600 --> 00:00:56,040 But here's the part I'm really struggling to wrap my head 20 00:00:56,040 --> 00:00:58,200 around. The DMV had previously 21 00:00:58,200 --> 00:01:00,920 threatened to suspend Tesla's license to sell cars in 22 00:01:00,920 --> 00:01:03,280 California if they didn't fix their marketing language 23 00:01:03,280 --> 00:01:05,560 regarding Full Self Driving and Autopilot. 24 00:01:05,840 --> 00:01:07,560 But they did fix it. They did. 25 00:01:07,600 --> 00:01:12,520 As of last week, February 17th, the DMV, we effectively said OK, 26 00:01:12,600 --> 00:01:15,800 you change the language, you are good to go, no suspension. 27 00:01:15,800 --> 00:01:17,800 Correct. The gun was removed from their 28 00:01:17,800 --> 00:01:19,520 head. The immediate threat to their 29 00:01:19,520 --> 00:01:22,680 revenue stream, which is being unable to sell cars in their 30 00:01:22,680 --> 00:01:24,760 biggest U.S. market, was neutralized. 31 00:01:25,160 --> 00:01:28,280 So if the threat is gone and they've already complied with 32 00:01:28,280 --> 00:01:30,080 the. Changes why so now, yeah. 33 00:01:30,320 --> 00:01:34,240 Why represent yourself in court yesterday to fight a battle 34 00:01:34,240 --> 00:01:37,680 that, on paper, is already over? Why kick the hornet's nest? 35 00:01:37,680 --> 00:01:41,320 That is the multi billion dollar question we are unpacking today 36 00:01:41,920 --> 00:01:44,600 and to understand the answer we have to look beyond just the 37 00:01:44,600 --> 00:01:46,840 immediate threat of a license suspension. 38 00:01:47,200 --> 00:01:50,360 We have to look at court filings from February 13th, the DMV 39 00:01:50,360 --> 00:01:53,600 rulings from two months ago, and some crucial financial context. 40 00:01:53,600 --> 00:01:56,200 OK, so let's start with the actual lawsuit first, the one 41 00:01:56,200 --> 00:01:57,920 filed on February 13th. Right. 42 00:01:57,920 --> 00:02:01,040 So Tesla's attorneys filed a complaint in state court, and 43 00:02:01,040 --> 00:02:03,640 they are specifically targeting a decision made by the Office of 44 00:02:03,640 --> 00:02:07,840 Administrative Hearings, or OAH. And the OAH is the body that 45 00:02:07,840 --> 00:02:10,880 handles disputes between state agencies and businesses, right? 46 00:02:11,160 --> 00:02:13,760 Exactly. And about two months ago, the 47 00:02:13,800 --> 00:02:18,000 OAH ruled that Tesla had engaged in false advertising by using 48 00:02:18,000 --> 00:02:20,880 terms like Autopilot and full self driving. 49 00:02:21,160 --> 00:02:23,600 And Tesla's response in this new filing? 50 00:02:23,800 --> 00:02:27,400 They are calling the ruling wrongful and baseless. 51 00:02:28,320 --> 00:02:31,640 They are arguing that the OAH got the facts completely wrong 52 00:02:31,880 --> 00:02:34,640 and that the label needs to be completely scrubbed from the 53 00:02:34,640 --> 00:02:36,640 record. Wrongful and baseless. 54 00:02:36,680 --> 00:02:39,080 I mean, that is very strong language for a company that 55 00:02:39,080 --> 00:02:41,960 effectively just admitted they needed to clarify things by 56 00:02:41,960 --> 00:02:44,920 adding supervised to the name of the software. 57 00:02:44,960 --> 00:02:47,280 Well, and that's the nuance they're trying to navigate here. 58 00:02:47,480 --> 00:02:50,960 Tesla saying fine we will change the name to Full Self Driving 59 00:02:50,960 --> 00:02:53,880 Supervised to keep the peace and keep selling cars today, but 60 00:02:53,880 --> 00:02:57,080 they are refusing to accept the premise that the original names 61 00:02:57,080 --> 00:02:59,800 were inherently deceptive. I see, so the argument is more 62 00:02:59,800 --> 00:03:02,840 like we're changing it to be helpful moving forward, but we 63 00:03:02,840 --> 00:03:05,280 refuse to legally admit we were wrong in the past. 64 00:03:05,440 --> 00:03:07,440 Precisely. It sounds like a matter of 65 00:03:07,440 --> 00:03:10,600 corporate pride, but being legally categorized as a false 66 00:03:10,600 --> 00:03:12,640 advertiser carries incredible weight. 67 00:03:13,160 --> 00:03:16,920 It's about the permanent record. So what is their actual defense? 68 00:03:17,080 --> 00:03:19,600 Because looking at it as a consumer, full self driving 69 00:03:19,600 --> 00:03:21,520 seems like a pretty specific promise. 70 00:03:22,120 --> 00:03:24,880 If I go to a restaurant and buy something called the Full roast 71 00:03:24,880 --> 00:03:27,560 Beef and it's just two slices of plain bread, I'm going to be 72 00:03:27,560 --> 00:03:30,040 confused. Right, and that was exactly the 73 00:03:30,040 --> 00:03:32,840 DMV's argument. They said the terms inherently 74 00:03:32,840 --> 00:03:35,760 suggested the cars were autonomous when they weren't. 75 00:03:36,440 --> 00:03:39,640 But Tesla's argument in this new filing is really interesting. 76 00:03:40,160 --> 00:03:43,760 They are leaning heavily on the idea that no one was actually 77 00:03:43,760 --> 00:03:46,240 confused. Really, that's the defense. 78 00:03:46,240 --> 00:03:49,440 Yeah, they argue the DMV never proved that consumers were 79 00:03:49,440 --> 00:03:51,800 confused. They're filing claims that it 80 00:03:51,800 --> 00:03:55,000 was, quote, impossible to buy the car or use the features 81 00:03:55,240 --> 00:03:58,160 without seeing clear, repeated statements that the vehicle is 82 00:03:58,160 --> 00:04:00,000 not autonomous. Impossible. 83 00:04:00,000 --> 00:04:02,400 That seems like a very high bar to clear in court. 84 00:04:02,440 --> 00:04:05,640 It is, but they are pointing to the user manual. 85 00:04:05,640 --> 00:04:08,120 The on screen warnings every time you enable the feature, the 86 00:04:08,120 --> 00:04:11,840 fine print on the website, they're basically saying, look, 87 00:04:12,200 --> 00:04:14,840 we told you to keep your hands on the wheel, we told you 88 00:04:14,840 --> 00:04:18,040 require supervision. If you thought it drove itself, 89 00:04:18,320 --> 00:04:19,920 you just weren't reading the instructions. 90 00:04:20,040 --> 00:04:22,640 You know that reminds me of those terms and conditions we 91 00:04:22,640 --> 00:04:25,040 all just scroll past on every app we download. 92 00:04:25,440 --> 00:04:29,360 Legally, the text is there, but there is a serious tension 93 00:04:29,360 --> 00:04:33,600 between a brand name like Autopilot and the fine print 94 00:04:33,600 --> 00:04:35,280 telling you to keep your hands on the wheel. 95 00:04:35,360 --> 00:04:38,240 It's the core tension of this entire saga. 96 00:04:38,400 --> 00:04:40,480 For years Tesla has lived in in that gap. 97 00:04:41,120 --> 00:04:44,440 Autopilot sounds like an airplane which still has pilots 98 00:04:44,760 --> 00:04:47,280 but people associated with the plane flying itself. 99 00:04:47,840 --> 00:04:51,320 Full self driving sounds like a robot but the screen says keep 100 00:04:51,320 --> 00:04:53,520 your hands on the wheel. And they have made changes 101 00:04:53,520 --> 00:04:56,840 recently to how they sell this. They have, you mentioned 102 00:04:56,840 --> 00:05:00,040 supervised being added to the name last week, but they've also 103 00:05:00,040 --> 00:05:02,840 shifted the business model. It used to be this massive 104 00:05:02,840 --> 00:05:07,040 upfront fee to buy FSD. Now they've really pivoted to a 105 00:05:07,040 --> 00:05:09,360 subscription model. Which maybe changes the 106 00:05:09,360 --> 00:05:11,880 expectation a bit. It frames it more as a software 107 00:05:11,880 --> 00:05:14,280 service rather than a fundamental capability of the 108 00:05:14,320 --> 00:05:17,240 physical car. Right, but clearly the DMV felt 109 00:05:17,360 --> 00:05:20,800 that wasn't enough to erase the past marketing, which is why the 110 00:05:20,800 --> 00:05:22,880 OAH ruling happened in the first place. 111 00:05:23,040 --> 00:05:26,720 OK, but here is where I get stuck on Tesla's argument that 112 00:05:26,720 --> 00:05:30,400 it was impossible for anyone to be confused because we have 113 00:05:30,400 --> 00:05:32,640 eyes. We have seen how people treat 114 00:05:32,640 --> 00:05:35,440 these cars on the road. The behavior suggests people 115 00:05:35,440 --> 00:05:37,000 were very confused. Right. 116 00:05:37,000 --> 00:05:39,600 I'm thinking specifically about that, that 60 Minutes interview. 117 00:05:39,600 --> 00:05:41,600 Do you remember this back in 2018? 118 00:05:41,800 --> 00:05:45,080 Vividly. That clip is basically legendary 119 00:05:45,080 --> 00:05:48,960 in legal circles at this point. So Elon Musk is in a model 3 120 00:05:48,960 --> 00:05:52,360 with Leslie Stahl. They were on the highway and he 121 00:05:52,360 --> 00:05:54,520 literally takes his hands off the wheel. 122 00:05:54,520 --> 00:05:58,360 Hands completely in the air. Gesturing while he talks, he 123 00:05:58,360 --> 00:06:01,680 tells her he is, quote, not doing anything, and he claims 124 00:06:01,680 --> 00:06:05,880 the car is driving itself. Now, if the CEO of the company 125 00:06:05,880 --> 00:06:08,720 is on national television demonstrating that, doesn't that 126 00:06:08,720 --> 00:06:11,560 totally undermine the argument that consumers should just read 127 00:06:11,560 --> 00:06:13,320 the manual and keep their hands on the wheel? 128 00:06:13,320 --> 00:06:15,440 It absolutely complicates their defense. 129 00:06:15,680 --> 00:06:18,800 You can point to the manual all day long, but if the public 130 00:06:18,800 --> 00:06:22,080 demonstration by the face of the company contradicts that manual, 131 00:06:22,440 --> 00:06:24,800 a jury is going to have a really hard time accepting that no 132 00:06:24,800 --> 00:06:28,400 reasonable person was confused. Because the CEO was acting like 133 00:06:28,400 --> 00:06:32,440 it was fully autonomous. Exactly, and juries are already 134 00:06:32,440 --> 00:06:35,360 having a hard time with it. Look at the fatal crash verdict 135 00:06:35,360 --> 00:06:38,680 from late last. Year the $243 million verdict. 136 00:06:38,680 --> 00:06:41,960 Yes, this is a crucial piece of context for why Tesla is 137 00:06:41,960 --> 00:06:44,360 fighting the DMV so hard right now. 138 00:06:44,480 --> 00:06:47,520 Right. So in that specific case, the 139 00:06:47,520 --> 00:06:50,360 driver was on the highway and dropped his phone. 140 00:06:50,440 --> 00:06:52,200 Correct. He was driving, dropped his 141 00:06:52,200 --> 00:06:56,040 phone and scrambled to pick it up, and he testified that he 142 00:06:56,040 --> 00:07:00,560 relied on the Enhanced Autopilot system to brake for an obstacle 143 00:07:00,560 --> 00:07:02,680 while he was looking down. And it didn't brake. 144 00:07:02,760 --> 00:07:06,280 It didn't, and the during held Tesla partly liable for the 145 00:07:06,280 --> 00:07:08,840 crash. They looked at the situation and 146 00:07:08,840 --> 00:07:12,000 decided that, yes, the driver was distracted, but the company 147 00:07:12,000 --> 00:07:14,680 bears responsibility for creating an expectation of Stacy 148 00:07:14,680 --> 00:07:17,040 that just didn't exist. Which feels like a direct 149 00:07:17,040 --> 00:07:19,680 refutation of what Tesla's arguing in this new lawsuit. 150 00:07:20,000 --> 00:07:22,360 Tesla's saying it's impossible to be confused and a jury 151 00:07:22,360 --> 00:07:24,960 literally just said this driver was confused and it is partly 152 00:07:24,960 --> 00:07:27,440 your fault. Exactly, and that verdict was 153 00:07:27,440 --> 00:07:31,200 nearly 1/4 of a billion dollars. Now imagine if the state of 154 00:07:31,200 --> 00:07:34,520 California, which is the biggest car market in the US, has a 155 00:07:34,520 --> 00:07:38,880 finalized, uncontested ruling on the books that officially labels 156 00:07:38,880 --> 00:07:42,240 Tesla a false advertiser regarding autonomy. 157 00:07:42,440 --> 00:07:45,120 It's Exhibit A in every future lawsuit. 158 00:07:45,200 --> 00:07:47,040 Exactly. It opens the floodgates. 159 00:07:47,080 --> 00:07:50,000 Every time there's a crash, every plaintiff's lawyer just 160 00:07:50,000 --> 00:07:52,680 walks into court and says the state of California already 161 00:07:52,680 --> 00:07:54,760 determined they lie about this technology. 162 00:07:55,240 --> 00:07:57,120 Tesla simply cannot afford that label. 163 00:07:57,240 --> 00:08:00,680 So even though they satisfied the DMV's immediate demand to 164 00:08:00,680 --> 00:08:04,000 change the website to avoid a suspension, they have to scrub 165 00:08:04,000 --> 00:08:07,160 that false advertiser Scarlet Letter off their record. 166 00:08:07,240 --> 00:08:09,000 It is entirely about risk containment. 167 00:08:09,080 --> 00:08:11,040 Which brings us to the why now of it all. 168 00:08:11,200 --> 00:08:14,440 Because it is 2026, we are looking at a very different 169 00:08:14,440 --> 00:08:17,320 Tesla than the one in 2018. Very different, and this is 170 00:08:17,320 --> 00:08:19,680 where their broader business strategy comes into play. 171 00:08:19,680 --> 00:08:22,200 Because EV sales actually declined last year. 172 00:08:22,360 --> 00:08:24,120 Right. The market for standard electric 173 00:08:24,120 --> 00:08:26,800 vehicles has saturated. Competition is fierce. 174 00:08:26,880 --> 00:08:29,840 Everyone makes a good EV now. So Tesla has signalled very 175 00:08:29,840 --> 00:08:32,919 clearly that their future isn't just selling standard cars to 176 00:08:32,919 --> 00:08:35,400 human drivers anymore. It is robotaxis. 177 00:08:35,880 --> 00:08:39,400 They are currently testing automated vehicles in Austin, 178 00:08:39,400 --> 00:08:40,960 TX. And they just announced the 179 00:08:40,960 --> 00:08:42,880 start of production for the Cyber Cab. 180 00:08:43,120 --> 00:08:44,320 Right. And for you listening who 181 00:08:44,320 --> 00:08:47,560 haven't seen the design of the Cyber Cab, it is A2 seater 182 00:08:47,560 --> 00:08:50,480 vehicle with absolutely no steering wheel and no pedals. 183 00:08:50,560 --> 00:08:53,000 None. It is designed entirely around 184 00:08:53,000 --> 00:08:57,440 the premise that the computer does 100% of the driving 100% of 185 00:08:57,440 --> 00:08:57,640 the. Time. 186 00:08:57,640 --> 00:08:59,360 OK, so connect the dots for me here. 187 00:08:59,640 --> 00:09:03,640 How does this lawsuit against the DMV relate to the launch of 188 00:09:03,640 --> 00:09:05,640 the Cyber Cab? It comes down to trust. 189 00:09:06,040 --> 00:09:08,880 If you are trying to convince regulators to let you put a car 190 00:09:08,880 --> 00:09:11,400 on public roads without a steering wheel, and you were 191 00:09:11,400 --> 00:09:14,400 trying to convince the public to actually get inside that car, 192 00:09:14,840 --> 00:09:18,480 you cannot have a regulatory record that says you've falsely 193 00:09:18,480 --> 00:09:20,560 advertised self driving capabilities. 194 00:09:21,560 --> 00:09:24,240 Because if you lied about full self driving back when there was 195 00:09:24,240 --> 00:09:27,280 a steering wheel, why should anyone trust you when you say it 196 00:09:27,280 --> 00:09:29,440 works now that you've literally taken the wheel away? 197 00:09:29,520 --> 00:09:32,000 Exactly. The stakes are existential for 198 00:09:32,000 --> 00:09:34,640 them now. In the past, if Autopilot 199 00:09:34,640 --> 00:09:37,720 failed, the human driver could grab the wheel that was the fail 200 00:09:37,720 --> 00:09:40,440 safe. With a cyber cab there is no 201 00:09:40,440 --> 00:09:43,040 fail safe. The system is the driver. 202 00:09:43,040 --> 00:09:46,360 So the definition of full self driving stops being a marketing 203 00:09:46,360 --> 00:09:49,920 term and becomes the literal legal definition of the product. 204 00:09:49,920 --> 00:09:53,080 They need a totally clean slate before the cyber cab hits the 205 00:09:53,080 --> 00:09:55,440 streets and volume. They need a clean bill of health 206 00:09:55,440 --> 00:09:57,680 from regulators. They need the narrative to be. 207 00:09:58,240 --> 00:10:00,400 We have always been clear, the technology has been steadily 208 00:10:00,400 --> 00:10:02,200 progressing and now it is fully ready. 209 00:10:02,520 --> 00:10:06,440 They cannot afford the narrative to be we over promised for a 210 00:10:06,440 --> 00:10:08,640 decade and now we want your blind faith. 211 00:10:08,960 --> 00:10:10,920 Which makes sense. There was a clip from Nancy 212 00:10:10,920 --> 00:10:12,480 Tangler. She's an investor in one of our 213 00:10:12,480 --> 00:10:15,080 sources, and she was calling Tesla a generational 214 00:10:15,080 --> 00:10:18,640 opportunity, yes, but that opportunity seems entirely 215 00:10:18,640 --> 00:10:21,840 contingent on this pivot to robotax is actually working. 216 00:10:22,080 --> 00:10:24,600 It is. The massive valuation of the 217 00:10:24,600 --> 00:10:27,440 company isn't based on selling a few more Model YS. 218 00:10:27,840 --> 00:10:31,480 It is based on the idea that Tesla will solve autonomy and 219 00:10:31,480 --> 00:10:33,760 dominate the robotaxi market globally. 220 00:10:34,360 --> 00:10:36,440 Nancy Tangler is absolutely right that if they pull it off 221 00:10:36,440 --> 00:10:40,160 its massive, but the IF is doing a lot of heavy lifting. 222 00:10:40,280 --> 00:10:43,400 And that if gets very shaky if the courts decide you've been 223 00:10:43,400 --> 00:10:45,800 lying about your progress the whole time. 224 00:10:45,800 --> 00:10:47,840 Correct, and other regulators are watching. 225 00:10:48,360 --> 00:10:51,800 If California sticks to this false advertising ruling, other 226 00:10:51,800 --> 00:10:53,440 states might just follow their lead. 227 00:10:53,920 --> 00:10:56,600 It makes getting permits for the cyber cab much harder 228 00:10:56,600 --> 00:10:58,400 everywhere. There is one other legal 229 00:10:58,400 --> 00:11:00,760 headache we should touch on because it ties directly into 230 00:11:00,760 --> 00:11:03,880 this DMV situation, the class action lawsuit. 231 00:11:04,120 --> 00:11:06,560 Right, the one currently winding through the California courts. 232 00:11:06,640 --> 00:11:08,600 Yeah. And this isn't the state suing, 233 00:11:08,600 --> 00:11:12,000 this is actual customers. Customers who bought FSD years 234 00:11:12,000 --> 00:11:14,960 ago, some of them paid 10 or $12,000 upfront. 235 00:11:15,080 --> 00:11:17,960 Expecting their cars would be revenue generating ROBER taxes 236 00:11:17,960 --> 00:11:20,520 by now. Because that was the pitch Musk 237 00:11:20,520 --> 00:11:24,200 promised for years, that the car you bought today would 238 00:11:24,200 --> 00:11:26,880 appreciate in value because it would go earn money for you as a 239 00:11:26,880 --> 00:11:29,760 Rover taxi while you slept. Which has not happened. 240 00:11:29,760 --> 00:11:32,480 Has not happened. So those customers formed a 241 00:11:32,480 --> 00:11:35,200 class action and are saying I paid for a feature that doesn't 242 00:11:35,200 --> 00:11:36,720 exist. I want my money back. 243 00:11:36,800 --> 00:11:41,520 And if the DMV rulings stands. It is basically a signed 244 00:11:41,520 --> 00:11:43,520 confession for the class action lawsuit. 245 00:11:43,760 --> 00:11:46,480 The consumers can just point to it and say, look, the state 246 00:11:46,480 --> 00:11:50,000 regulator already investigated and found that Tesla falsely 247 00:11:50,000 --> 00:11:52,880 advertised this feature, therefore give us our refunds. 248 00:11:53,120 --> 00:11:55,320 That could be billions of dollars in refunds. 249 00:11:55,320 --> 00:11:58,680 Easily, the financial hit would be massive, but again, the 250 00:11:58,680 --> 00:12:01,720 reputational hit of losing a massive false advertising class 251 00:12:01,720 --> 00:12:05,160 action right as you launch the cyber cab might be even worse. 252 00:12:05,320 --> 00:12:08,640 It really feels like they are fighting a war on 2 fronts here. 253 00:12:08,680 --> 00:12:11,960 They have the legacy business, the cars with steering wheels 254 00:12:11,960 --> 00:12:14,760 where they need to justify the past marketing, and then they 255 00:12:14,760 --> 00:12:17,240 have the future business, the cyber cab, where they need to 256 00:12:17,240 --> 00:12:20,120 build absolute trust. And they are trying to use this 257 00:12:20,120 --> 00:12:23,320 lawsuit against the DMV to bridge that exact gap. 258 00:12:23,720 --> 00:12:25,520 They want to get a judge to agree that they were never 259 00:12:25,520 --> 00:12:27,520 deceptive, that the technology was always meant to be 260 00:12:27,520 --> 00:12:29,680 supervised, and that they were clear about that. 261 00:12:30,040 --> 00:12:33,400 If they win, it weakens the class action and clears the 262 00:12:33,400 --> 00:12:35,120 regulatory pass for the cyber cap. 263 00:12:35,840 --> 00:12:39,680 So to sum this all up, Tesla has technically satisfied the DMV by 264 00:12:39,680 --> 00:12:43,200 adding the word supervised to their labels, but they are suing 265 00:12:43,200 --> 00:12:46,000 anyway to scrub the false advertiser brand from their 266 00:12:46,000 --> 00:12:48,040 record. They claim their warnings were 267 00:12:48,040 --> 00:12:51,040 always perfectly clear, despite years of marketing that 268 00:12:51,040 --> 00:12:53,720 suggested otherwise. The pivotal question isn't just 269 00:12:53,720 --> 00:12:57,200 about a name change or updating a manual, It is about whether a 270 00:12:57,200 --> 00:13:01,400 company can claim a system is full self driving while legally 271 00:13:01,400 --> 00:13:04,160 arguing that no reasonable person to trust it to drive 272 00:13:04,160 --> 00:13:07,800 itself as the cyber cab with no steering wheel rolls off the 273 00:13:07,800 --> 00:13:10,280 line. In Texas, that definition is no 274 00:13:10,280 --> 00:13:13,880 longer just semantics, it is literally the entire business.