A spokesperson for the California DMV said the agency recently met with Tesla, but the company has yet to apply for a permit for driverless testing or deployment.

"They've got to show progress, and that's what we didn't get," Gene Munster, a managing partner of Deepwater Asset Management who writes about Tesla and Alphabet, told Business Insider.

Shares of Tesla ( TSLA) fell 9% on Thursday following another dismal earnings report, released after the bell Wednesday.

A week after the spat in June, Reuters reported the White House had directed the Defense Department and NASA to gather details on billions of dollars in SpaceX contracts to ready possible retaliation...