A California administrative judge on Monday set back Tesla as the electic carmaker fends off allegations from the state's top regulator that it falsely marketed its vehicles' self-driving feature.Judge Juliet Cox of the state Office of Administrative Hearings (OAH) rejected Tesla's effort to have the lawsuit brought by the California Department of Motor Vehicles dismissed.

Tesla Inc. failed to persuade an administrative judge to dismiss claims by a California regulator that the company overstated its vehicles’ self-driving capabilities — one of several ongoing regulatory investigations of the electric-car maker’s marketing.

A California administrative judge rejected Tesla's bid to dismiss claims by a top state regulator accusing the automaker led by billionaire Elon Musk of overstating its vehicles' self-driving capabilities.