Public Bank — the stock that made many millionaire

Public Bank Bhd, Malaysia's second largest listed banking group by market capitalisation and the third largest by assets, has been a worthwhile investment for many who stayed on as its shareholders over the years.

Founded by the late Tan Sri Dr Teh Hong Piow, the bank, whose first branch was opened in 1966 in Jalan Gereja here, was listed on Bursa Malaysia in 1967. Since then, it has grown from strength to strength, with a total of 293 domestic branches, 150 overseas branches, and a staff force of over 19,000 people, with presence in markets such as China, Hong Kong, Cambodia, Vietnam, Laos and Sri Lanka.

Known for its strong financial performance, consistent prudent management, as well as generosity to performing staff, the bank's market capitalisation hit a record high of RM98.3 billion in August 2018. At its Tuesday (Dec 13) close of RM4.39 per share, the bank's market cap stood at RM85.21 billion.

Just from the year 2000 — when Public Bank was trading at an adjusted price of 72 sen — the stock has climbed 510%, representing a compound annual growth rate of an impressive 8.56% in the last 22 years. Comparatively, Malaysia's retirement savings fund, the Employees Provident Fund, provided annual returns of between 4.25% and 6.9% in the same period.

An investor who bought into the company at the time and followed through with just one rights issue in 2014 would have enjoyed capital gains of a whopping 2,998%, even without reinvesting the healthy dividends obtained into the company.

Consider one who invested RM72,000 (adjusted) in 100,000 shares of Public Bank at the start of 2000. The same investor needed to only spend another RM10,600 to fully subscribe to a one-for-10 rights issue entitlement in 2014, totalling an investment cost of RM82,600. The value of that investment would have ballooned to RM2.56 million by now.

That means this investor would have enjoyed capital gains that amounted to RM2.48 million or 2,998% — not including dividends — based on the stock's Tuesday closing price of RM4.39 per share.

The huge gains are thanks to Public Bank's penchant for rewarding bonus issues to shareholders, which greatly compounded the gains from the share price appreciation. While many companies boast about making bonus issuances to reward shareholders, Public Bank represents a case study of how shareholders can really be rewarded when such issuances are done right.

Between 2000 and 2022, Public Bank made four bonus share issuances — in 2001, 2002, 2003 and 2021 — and distributed stock dividends twice, once in 2009 and then in 2010.

Coupled with a two-to-one share consolidation back in 2004 and the rights issue in 2014, the 100,000 shares that the aforementioned investor acquired in 2000 would have multiplied to 583,000 shares presently, or an increase of 483%.

Besides the capital gains from the increase in share price, cumulative dividends for the said investor in the past 22 years, compounded by the increase in number of shares held, amounted to over a million ringgit. Should this amount be reinvested into the company, the investor would certainly have made way more returns.

Public Bank's ability in rewarding its loyal shareholders beats that of many other companies on Bursa Malaysia. Will there be more companies listed on the local bourse that will be able to provide similarly handsome returns to shareholders in the future?

This Is The Registry Hack That Lets You Install Windows 11 On Unsupported PC

Four months after it was first unveiled to the world, Microsoft unleashed Windows 11 to end users earlier this week. As you may know, the minimum system requirements for the new operating system are not only much higher than its predecessor but is also more stringent, down to the mandatory TPM 2.0 chip and specific lists of supported processors.

Interesting enough, there is a way to bypass the TPM and CPU check and believe it or not, this came directly from Microsoft. All you need to do is add a registry key value into your machine.

If you decide to do this, do make sure to be careful as your machine could turn haywire if you did something wrong in the Registry Editor. So, here are the steps:

1. Press the Windows button, type Registry Editor, and click on the search result once the program appears. Alternatively, press Windows + R to open the Run command window, type regedit, and press OK.
2. Press Yes when User Account Control pops up.
3. Find HKEY_LOCAL_MACHINE\SYSTEM\Setup\MoSetup.
4. Right-click on the right-hand panel and choose New > DWORD (32-bit) value.
5. Type AllowUpgradesWithUnsupportedTPMOrCPU as the Value name.
6. Type 1 as the Value data. Leave the Base as Hexadecimal.
7. Press Ok and close the Registry Editor.

Do note that you still need a TPM 1.2 chip to be present and enabled in your machine before you can install Windows 11. Furthermore, Microsoft has said that unsupported PC will not be entitled to updates and that also include security updates.

Kaspersky Warns Of BloodyStealer Trojan That Swipes Data From Gamers’ Accounts

Kaspersky has put out a warning for a trojan tool known as BloodyStealer. The malware was given its name by its creators as it does exactly what its namesake suggests but more importantly, the antivirus software has said that the tool has mostly been used against gamers and several gaming platforms.

As per its official blog post, BloodyStealer was discovered to have mainly affected PCs belonging to gamers and were lodged within the major gaming platforms, including Steam, Epic Games, Origin, GOG, and Bethesda. The antivirus company says that while the malware is still relatively new, it has already found victims within Europe, Latin America, and the Asia Pacific region. Worst still, the trojan is allegedly being sold on the underground market to threat actors as part of a malware-as-a-service (MaaS) distribution model, at a price of US$40 (~RM167) for a “lifetime license”.

As for what it steals, the “official” advertisement for BloodyStealer states that it steals, passwords, cookies, bank card details, gaming account details, device data, screenshots, and even logs, the last item being of particularly popular demand. Games as well are not safe from the malware, with many games stolen with the trojan can be seen being sold on the dark web, and at less than US$1 (~RM4.18) in most situations.

To avoid becoming a victim of BloodyStealer, Kaspersky is preaching that people deploy what it calls “common sense” measures: strong passwords, 2-factor authentication (2FA), downloading apps from trusted sources, and simply not clicking on links provided by strangers in emails, or even those sordid links that are usually passed on by unknown numbers via messaging apps. For gamers, it also has a guide on how to maximise the security settings for all gaming platforms.

Samsung Wants To Make An AI Chip That Mimics The Human Brain

Samsung, together with researchers from Harvard University, have published a paper that puts forth their idea of making neuromorphic chips, semiconductor technology that mimics the human brain by “copying and pasting”. The Perspective paper, published in Nature Electronics, propose that the feat can be achieved by – in their own words – copying the brain’s neuronal connection map using a nanoelectrode array and pasting the map onto a high-density three-dimensional network of solid-state memories, such as commercial SSDs or resistive RAM.

They claim that the copy and paste method would create a chip that shares brain-like traits such as running on low power, facile learning, adaptation to environment, autonomy, and even cognition. Each of the memory drives would be programmed so that its conductance represents the strength of each neuronal connection in the copied map.

The human brain has an estimated 100 billion neurons, so Samsung says that the ultimate neuromorphic chip will require 100 trillion or so memories. The idea of neuromorphic engineering has been around since the 1980s, but has never been achieved due to its complexity.

The researchers say that the neuronal connection map is the key to reverse engineering how our brains work and applying them in our computers. It’s probably still a long way away from becoming a reality, so for now, we’ll have to be content with AI that swerves your vacuum away from hitting dog poo.

Hacker Group Reportedly Selling Rootkit That Plants And Hides Malware Within GPUs

Reports of a new rootkit that allows hackers to hide malware within GPU memory are beginning to surface. The most recent news was reported by Bleeping Computers, who allegedly discovered the rootkit being peddled across several of these forums.

Specifically, the hackers were selling a proof-of-technique concept that enables threat actors to store their malicious code within the GPU memory buffer, instead of hiding it within the RAM, as most malware is typically hidden. Doing this enables the malware to stay hidden from antivirus software, as said programs usually do not scan the memory buffer of the GPU.

This isn’t the first time that a malware of such nature has been created either. Six years ago, a hacker group called Team Jellyfish create the world’s first GPU-based malware, aptly named JellyFish. The rootkit was Linux-based and served as the foundation of other GPU-based rootkits that exist on the market.

As for which GPU the rootkit works on, the seller says that it only works on Windows systems supporting Open CL 2.0. In addition, the GPUs that were tested with the rootkit include Intel’s UHD 620 and 630 integrated graphics, NVIDIA’s GeForce GTX 740M, GTX 1650, and AMD’s Radeon RX 5700.

At the time of writing, the code had already been sold and that the seller is preparing a demonstration, in order to show how it works publicly.

Louis Vuitton Introduces A UFO-Like Wireless Speaker That Costs RM12600

When a highly esteemed designer brand announces a tech product, it wouldn’t be surprising if you expected it to feature these two factors: an outlandish design, and an eye-watering price tag. Well, Louis Vuitton’s recently introduced LV Horizon Light Up Speaker aces them with flying colours – quite literally too, with 23 onboard LEDs that produces an RGB light show while it plays music.

Even though some of the more recent wireless audio device offerings from brands such as Sony and B&O feature less-than-traditional designs, they still can’t hold a candle to what Louis Vuitton has envisioned for the Horizon. Inspired by its own Toupie handbag, the new LV-branded speaker sports the same top-like form factor but thanks to its onboard lighting, it now resembles a fashion conscious UFO instead. Size-wise, the device comes in at 18 cm tall and 14 cm wide, with a weight of 1 kg.

Found under the top cone is a 3-inch woofer which is surrounded by the aforementioned lighting system, followed by black perforated and embossed leather that covers the Horizon’s two onboard 0.75-inch tweeters. On one side of the device is a column featuring touch-based controls for playback, power management and so on. Meanwhile, the surrounding Louis Vuitton wordings on the center of the speaker comes with RGB lighting capability as well.

According to the brand, the not-so-practical design is intentional as the Horizon is meant to sit on its side. Alternatively, you can also place it on the included charging dock to avoid any potential mishaps from happening. Speaking of charging, the new LV wireless speaker is claimed to last up to 15 hours of playtime and a full battery top-up will require around 1.5 hours of charging time via the dock, which is connected to a power source via a USB-C cable.

In terms of audio delivery, Louis Vuitton claims that the Horizon is capable of outputting a frequency range of 60Hz to 16kHz, at a maximum loudness of 89 db SPL at 1m, with an amplifier power of 2x 30W. Until we actually have the device on-hand for testing (which we doubt this will ever happen), the jury’s out on whether LV’s device is capable of matching or surpassing other wireless speakers that are currently available in the market.

Other than that, the LV Horizon also comes with three built-in microphones for calls, but lacks an onboard voice assistant. On the software side of things, its companion app is available for users on Android, iOS, and even Huawei devices via their respective app stores.

So what’s the recommended retail price for the new Louis Vuitton Horizon Light Up Speaker? We hope you have plenty of disposable income to spend as it will cost you precisely RM12,600 for a unit (hey, we told you it will be eye-watering). Those interested can order the device now from Louis Vuitton’s official online store via the link provided below.

The Horizon isn’t the first tech-related product by LV, by the way. The brand currently has a selection of true wireless earbuds and even smartwatches under its belt – all of which also feature hefty price tags of their own.

Study Finds That Cybercriminals Are Utilising Malaysian Servers To Launch Malware Attacks

Cybercriminals are utilising servers located in Malaysia to launch online threats such as malware, claimed a recent study by Kaspersky Security Network (KSN). The company explained that this is due to most companies being closed as a result of the ongoing pandemic, therefore leaving their systems to fall behind in terms of cybersecurity.

KSN noted that cyberattacks triggered by local servers have ballooned to an alarming rate of 150% uptick with 512,014 incidents in the second quarter of 2021. This is a significant rise over the 204,313 cases that were recorded by Kaspersky during the period of January to March. 

Company general manager for Southeast Asia Yeo Siang Tiong says that Malaysia’s digitalisation drive not only welcomes investments to build more data centers locally, but attracts cybercriminals as well. At the same time, he is advising companies to equip servers and systems with holistic cyber defenses in order to thwart any potential threats.

In the same study, KSN also noted that it has detected over 28 million unique internet-borne cyberthreats in the second quarter of 2021, with over 8 million threats recorded locally. The overall total is said to be a drastic increase over the 10 million attacks that were blocked during the first three months of the year.

Kaspersky says that these infection attempts are often used to penetrate systems, and would usually take place when users visit infected websites. The most worrying variant being file-less malware that plants a malicious code into Windows’ registry or Windows Management Instrumentation (WMI) subscription, leaving no object for static analysis on the disk.

Facebook Survives Major Lawsuit That Could Have Broken Up Its Empire

A US federal court has dismissed antitrust complaints from the Federal Trade Commission (FTC) as well as numerous states against Facebook, quashing a major bid to force the social media giant to sell subsidiaries Instagram and WhatsApp.

Unsurprisingly, the court’s decision moved the markets. The price of Facebook’s shares rose by over 4% after the ruling, pushing the company’s total value over US$1 trillion (~RM4.15 trillion) for the first time, Reuters reported.

The judge who presided over the case ruled that the FTC failed to prove that Facebook had monopoly power in the US social networking market. He further dismissed a lawsuit initiated by many US states because they took too long to challenge the company’s acquisitions of Instagram and WhatsApp in 2012 and 2014 respectively.

“We are pleased that today’s decisions recognise the defects in the government complaints filed against Facebook,” said a Facebook spokesperson.

The FTC, which enforces US antitrust law, and a large group of US states sued Facebook last year for stifling market competition by acquiring its rivals like Instagram and WhatsApp.

Like other US tech giants, Facebook has come under increasing global scrutiny over its size and influence. Some American lawmakers want it to be broken up. In Germany, regulators are looking into whether the tech giant is strangling market competition – Apple, Amazon, and Google are also being probed over the same issue.

China’s E-Hailing Giant DiDi Files For IPO; Valuation Could Double That Of Grab

China’s largest e-hailing company, Didi Chuxing, has filed to be publicly listed in the US through an IPO (initial public offering) that could be the biggest this year. Indeed, the firm could end up with a valuation that is more than double that of Grab – the Southeast Asian giant that we’re all more familiar with.

Sources previously told Reuters that the IPO could aim for a valuation close to US$100 billion (~RM410.8 billion). And according to a Bloomberg report in April, the company was looking into a valuation of as much as US$70 billion (~RM287.6 billion) to US$100 billion. That would easily beat Alibaba’s US$25 billion (~RM102.7 billion) IPO in 2014 – the largest achieved by a Chinese company listing in the US.

As a comparison, Grab is going public in a SPAC deal worth US$39.6 billion (RM 163.7 billion) – the largest of its kind on record. For more information on what SPACs and IPOs are, you can refer to this piece. Of course, it’s worth mentioning that Didi has a substantially larger pool of potential customers (China, etc.) than Grab (Southeast Asia).

According to Reuters, Didi CEO Cheng Wei said last year that the company wants to have 800 million monthly active users worldwide and complete 100 million orders a day by 2022 – this includes e-hailing, bike and food delivery orders.

Grab, on the other hand, often touts the total population of Southeast Asia (currently 650 million) as its potential customers. As you can see, the difference is pretty staggering.

There’s A New Face Manipulation App That Transforms You Into A Pixar-Like Character

Meet the Voilà AI Artist Cartoon Photo app, which – as its ridiculously long name suggests – has the ability to transform your beautiful mug into a Pixar-like version of itself, among other things. And much like FaceApp, users are required to upload a photo of themselves (or others) via the software in order to be enhanced by developer Wemagine.AI’s cloud-based artificial intelligence system.

Aside from producing a photo worthy of an audition for the next Disney 3D animated movie, other styles featured on Voilà include hand-drawn caricatures, renaissance-esque portraits, and more. There are some limitations in play, however. As noted by the developer, the app (or its AI system, rather) is unable to process if more than one individual is detected in an image, and it also does not recognise photos of animals either. So if you’re hoping to transform your golden retriever into something similar to Dug from Disney’s Up, then you’re out of luck.

Like most apps out there, Voilà is free for everyone via Google Play Store and Apple App Store – at least, on the exterior. So what’s the catch? Again, much like FaceApp, expect the usual ad pop-ups, watermarked images and certain features locked behind a paywall. According to Wemagine.AI, the app’s “Pro” subscription fee is offered in three different options: US$ 3 for weekly, US$ 6 for monthly, and US$ 30 for yearly. As you’d expect, subscribing will grant you an ad-free experience, as well as removing the other non-premium limitations mentioned earlier.

In terms of privacy, Voilà and its developer noted in its policy that all data collected from the user is intended to provide and improve its service. In greater detail, Wemagine.AI explained that the app will access your device’s camera when activated, only retrieve uploaded photos for enhancements, and would not access your device’s photo albums. It also stated that it may collect certain information such as your IP address, browser type and version, and unique identifiers, device information, and purchase history only for analytical purposes. The developer also notes that it will comply with the user’s Do Not Track request by not collecting Advertising IDs or plant cookies.

Such privacy concerns had previously landed the app’s closest rival FaceApp in hot water. This was due to the fact that it also used cloud-based processing for image enhancements rather than featuring an on-device system. Furthermore, its developer, a Russian-based firm known as Wireless Labs, was alleged by the US government of sharing user information with its country’s authorities – something which the developer continued to deny due to the lack of evidence. That being said, Wemagine.AI told FOX Carolina that it is based in Canada, with small teams that work remotely and is scattered across the globe.

As mentioned earlier, Voilà is now available for both Android and iOS users globally. So if you happen to be looking for something that is currently unique and trendy to pass the time with, then this app may be it.

Google To Launch AI Tool That Can Help Identify Skin Problems Via Phone Camera

Are you a little worried about a rash on your arm or leg? At its annual developer conference I/O, Google announced that it intends to launch later this year an AI-powered tool that can help identify skin problems just through pictures taken by a smartphone camera.

According to Google, once launched, the tool will require you to take three pictures of the skin, hair or nail issue from different angles. Then you’ll be asked questions about your skin type, duration of the issue (how long you’ve had it), and other symptoms that will help the tool narrow down the possibilities.

The AI model crunches all this information and draws from its database of 288 conditions to provide you a list of possible matching conditions. Every matched condition will come with dermatologist-reviewed information and answers to frequently asked questions, along with similar matching pictures from the web.

However, Google said the tool isn’t meant to provide a formal diagnosis or replace professional medical advice as many conditions require review by doctor, in-person examination, or additional testing like a biopsy. That being said, the tech giant also pointed out that two billion people worldwide suffer from dermatologic (skin) issues while specialists are in short supply.

The company described the tool as the culmination of over three years of machine learning research and product development. It uses many of the same techniques that detect diabetic eye disease or lung cancer in CT scans.

Grab Singapore To Test Robot That Collects Orders From Different Restaurants In A Mall

Grab Singapore will be trialling a robot runner that goes around collecting orders from different restaurants in a mall. The robot will deposit the orders at a central location for the convenience of human delivery persons, who otherwise must collect each order separately.

The rationale for the robot is apparently driven by the growing popularity of Grab’s mix-and-match feature, which allows customers to order from different restaurants within a mall and pay only a single delivery fee. For delivery persons, this inevitably means longer times going through malls as multiple locations must be visited.

Fortunately, if Grab’s projections are right, the robot could shave off between five to fifteen minutes of this tedious multi-stop journey. Customers would enjoy faster delivery times and delivery persons could potentially fulfil more orders per day.

The robot itself is quite the marvel. Designed in partnership with Techmetics Robotics, it apparently learns about its surroundings through artificial intelligence (AI) and optimises for maximum efficiency.

It comes with built-in Light Detection and Ranging (LIDAR) sensors to detect incoming obstacles, an automated voice message to alert shoppers of its presence, and the ability to scan its immediate proximity in real-time to evade sudden obstacles.

To prevent tampering by passers-by, its food compartment is locked and its combination only given to participating merchants and Grab staff at the collection point.

It all sounds good, but we’ll have to see how it performs in real life. Grab has the same idea – it will trial the robot runner at Paya Lebar Quarter (PLQ) Mall in Singapore for a month, from the second week of June onwards, before considering expanding its use to other locations.

China passes anti-sanctions law that ‘can target individuals, families, organisations’

China’s top legislative body has passed an anti-sanctions law, providing legal backing for sweeping retaliation against any individuals, their families and organisations responsible for imposing foreign sanctions against the country.
The legislation was passed on Thursday at the closing session of the National People’s Congress (NPC) Standing Committee, and was effective the same day.
Tam Yiu-chung, Hong Kong’s sole delegate to the NPC Standing Committee, said that under the new law, the State Council and its agencies would be responsible for coordinating retaliatory measures.
“These measures can be applied to organisations and individuals, as well as extended to the individuals’ spouses, relatives and the organisations that they belong to,” he said.
State media said the move was intended to provide a legal basis for China to respond to sanctions. China has issued counter-sanctions in response to sanctions against it from the United States, the European Union, Britain and Canada over Beijing’s political crackdown in Hong Kong and treatment of ethnic minority groups in Xinjiang.
After the law was passed, Li Zhanshu, head of the NPC Standing Committee, said : “China will not give up its legitimate interest. And no one should have any illusion of letting China swallow the bitter fruit that harms our own interests.”
Chinese foreign ministry spokesman Wang Wenbin said the passage of the new law showed China’s determination to protect its sovereignty and core interests, and would not affect its relations with other countries.
The anti-sanctions law was announced on Monday night by state media and underwent a second reading but skipped a third, in the same way the national security law for Hong Kong went through the legislative process.
The new law is the strongest tool so far for China to respond to foreign sanctions, after the Ministry of Commerce in January issued a “blocking statute” requiring Chinese companies to report foreign restrictions on economic or trade activities. It had last September unveiled an unreliable entity list for foreign businesses.
Washington has imposed a number of sanctions on China over its policies in Hong Kong and Xinjiang, including targeting Hong Kong’s leader Carrie Lam Cheng Yuet-ngor and Xinjiang’s Communist Party chief Chen Quanguo, as well as other senior mainland and Hong Kong officials and the 14 vice-chairpersons of the NPC. Canada, Britain and the European Union also imposed sanctions on China.
Tian Feilong, an associate professor at Beihang University’s law school, has been involved in the consultations over the new legislation. He said the draft of the law was first read in April, after the US Senate Committee on Foreign Relations backed an act to counter competition from China.
He said discussion about the law started last year when Donald Trump was still US president, but China was waiting to see how Trump’s successor, Joe Biden, would approach relations with China.
“The central leadership was already considering it last year, and the academic community has made suggestions,” he said. “The timing is based on Biden’s China policies.”
Tam said it was not specified in the legislation whether the new law would apply to Hong Kong and Macau through local legislation.
“For a mainland law to apply in Hong Kong, it needs to be inserted into Annex III of the Basic Law … But the new law did not mention how the law would be applied outside the mainland,” he said. “I would not say that it could not be applied in Hong Kong either. Probably the mainland authorities need more time to study its application.”
Tam, who is also sanctioned by the US for the enactment of the national security law in Hong Kong, which critics say has undermined the city’s autonomy, said he supported the new law but had no plan to invoke any provision in it himself.
“I have not yet considered how this law will help me,” he said. “I just think that from the macro level, it is good to have this law so that it’s not just individual agencies or the central government [making] retaliatory measures, but the responsibility of the State Council as a whole.
“I support this law because as the Chinese saying goes, ‘Offend no one if none offends you, but retaliate if you are under attack.’”
There have been concerns among foreign companies over the lack of transparency around the legislative process and the potential impact on businesses in China and Hong Kong, which analysts say will need to be wary of being linked to foreign entities under Chinese sanctions.
Greg Gilligan, chairman of the American Chamber of Commerce in China, said it was difficult to comment on the law until details were available.
“However, where there is any disagreement across borders, governments need to come together to reconcile this in a way that allows businesses to remain legally compliant within the jurisdictions in which they operate,” he said.

Bank Of England Governor Warns Crypto Investors That They May Lose All Their Money

Interest in cryptocurrencies may be surging but there are still notable skeptics out there. Bank of England Governor Andrew Bailey warned cryptocurrency investors that they risk losing all of their money.

According to CNBC, Bailey was recently asked about the rising value of cryptocurrencies at a press conference, prompting him to say, “They have no intrinsic value. That doesn’t mean to say people don’t put value on them, because they can have extrinsic value. But they have no intrinsic value.”

“Buy them only if you’re prepared to lose all your money,” he added.

Unsurprisingly, his comments weren’t taken well by crypto enthusiasts. Cryptocurrency entrepreneur and billionaire Cameron Winklevoss tweeted, “People who don’t invest in #Bitcoin should be prepared to lose all of their money due inflation. All central bankers know this. Few understand this.”

Winklevoss and his brother, Tyler Winklevoss, famously sued Facebook founder Mark Zuckerberg for allegedly stealing their idea for the social media platform. They later founded a cryptocurrency exchange called Gemini. According to Forbes, both are now billionaires – thanks to their investments in bitcoin.

Relatedly, the Bank of England itself along with the UK Treasury are exploring the possibility of introducing a central bank-backed digital currency.

Tesla Informs Regulator That Level 5 Autonomous Driving Unachievable By Year-End

Tesla Inc told a California regulator that it may not achieve full self-driving technology or level 5 autonomous driving by the end of year, according to a memo by the US state’s Department of Motor Vehicles (DMV). As pointed out by Reuters, the memo was released by legal transparency group PlainSite, which obtained it under the Freedom of Information Act (FOIA).

The brand’s cars can be equipped with an optional Full Self-Driving (FSD) software, which grants limited vehicle autonomy to those who subscribed to include the addon. Naturally, the feature is usually endorsed by company CEO Elon Musk on Twitter, who even claimed during an earnings conference call in January that he is “highly confident the car will be able to drive itself with reliability in excess of human [interaction] this year.”

However, several accidents involving Tesla-branded cars have been recorded in the US as of late, with numbers totalling up to 20 cases – some being fatal. The most recent traffic collision was an unspecified Tesla vehicle which crashed into an overturned truck on a highway in California – killing the EV’s driver. Federal highway safety regulators and the state’s highway patrol are currently investigating the cause of the crash, with some speculation that the Tesla’s FSD software may be the one to blame.

The California DMV noted in the memo that Musk’s claims of Tesla cars’ self-driving capability on Twitter are extrapolated. It confirmed this after a conference call with Tesla representatives including the company’s autopilot engineer CJ Moore, who explained that its vehicles could only achieve Level 2 (L2) autonomy at this current time.

For those unfamiliar, L2 autonomy only handles partial tasks such as acceleration, steering and braking, but will still require the driver’s full attention. This can is often used to assist drivers when driving down highways at regulated speeds – think of it as somewhat of a more advanced version of cruise control. Level 2 is not capable of getting you from your point of origin to your destination automatically.

“Tesla indicated that they are still firmly in L2,” California DMV said in the memo. “As Tesla is aware, the public’s misunderstanding about the limits of the technology and its misuse can have tragic consequences.”

Another crash in late April which involved a 2019 Tesla Model S and killed two onboard individuals was first thought to have been caused by the car’s Autopilot system. Police noted that both individuals were seated in the front passenger seat and in the back of the vehicle, with no one seemingly driving the vehicle. Musk himself refuted this on Twitter, revealing that recovered data logs from the crashed vehicle indicated that the Autopilot system was not enabled and the owner did not include FSD in their purchase.

Regardless, as noted by the California DMV, the term “self-driving” or “autonomous driving” itself is capable of causing harm. This is especially when the feature is often associated with the potential capabilities of Level 5 autonomy which does not require any human supervision whatsoever. That, however, is merely a proposed technology milestone that has not been fully achieved by any manufacturer just yet, and may take several more years before it becomes a reality.