Major Auto Group Takes Issue With Tesla's (TSLA) Advertising Practices

Tesla Motors (Nasdaq: TSLA) is under a little pressure Tuesday following reports that the California New Car Dealers Association (CNCDA) wants regulators to take a look at some of the company's claims.

Auto News said today that CNCDA has issues with Tesla's claims that monthly payments on its Model S sedan would be lower than they actually were. Specifically, the group asked California's Department of Motor Vehicles to look into claims that the rate includes externals like fuel costs, incentives, and federal tax credits.

One example CNADA cites is the $7,500 federal tax credit, which it thinks is completely irrelevant to the price of Tesla's Model S, which has a base price of $71,070. Only about 20 percent of tax filers receive that credit, thus the group thinks Tesla is misleading about 80 percent of the population.

Tesla caught a little flack when it debuted its new financing plan last April. Pundits immediately took issue with the liberties Tesla used in calculating the actual cost of owning a Tesla, making it seem like it was affordable to more of the public than it actually was.

CNADA represents about 1,100 franchised car dealerships in California.

Shares of Tesla are down 0.6 percent early.

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