Tesla cannot call its driver assistance system "Autopilot", a German court has ruled.
Ruling on a lawsuit brought by a German competition regulator, the Munich Regional Court barred the electric car company from marketing its vehicles using the phrases "full potential for autonomous driving” and “Autopilot inclusive”.
Dr Andreas Ottofülling, lawyer for the Wettbewerbszentrale anti-competition industry group, said: "Since autopiloted and autonomous driving at level 5 is currently neither legally permissible nor technically possible for the vehicle in question, Tesla must adhere to the rules and must not make false advertising promises."
Tesla and chief executive Elon Musk have been criticised for overselling the abilities of the company's cars and blamed for a series of fatal crashes suffered by customers using the Autopilot system.
Autopilot has the ability to detect obstacles, carry out lane changes, take motorway exits and regulate speed, but it requires a driver to keep their hands on the wheel and eyes on the road at all times.
In 2018 Mr Musk was filmed for the US programme 60 Minutes taking his hands off the wheel while his car was in motion.
Exactly— Elon Musk (@elonmusk) July 14, 2020
Tesla drivers have also been caught sleeping and playing games behind the wheel of their cars.
Tesla has argued that while Autopilot cannot be relied upon to safely pilot the car, the name does not mislead buyers into believing that it can. It also says the system makes driving safer for users.
The company has faced previous hurdles marketing the system in Europe, with regulators limiting its abilities on safety grounds.
On Tuesday Mr Musk agreed with tweets posted by fans which argued that that name was similar to the autopilot used on aeroplanes, which also requires some human input.
"Telsa Autopilot was literally named after the term used in aviation. Also waht about Autobahn!?" he tweeted.
The Wettbewerbszentrale's members include Tesla's automotive competitors Volkswagen, BMW and Daimler.
Tesla can appeal the judgment. The company did not respond to a request for comment.