Wed Dec 17 22:41:54 UTC 2025: ## Tesla Faces Sales Suspension in California Over “Misleading” Self-Driving Claims

Sacramento, CA – California regulators are threatening to suspend Tesla’s license to sell vehicles in the state, citing deceptive marketing practices related to the company’s “Autopilot” and “Full Self-Driving” features. An administrative law judge has recommended a 30-day sales blackout after determining Tesla misled consumers about the capabilities of its autonomous driving technology.

The ruling follows a complaint filed by the California Department of Motor Vehicles (DMV) in 2023 and a subsequent hearing in July. Judge Juliet Cox found that Tesla’s use of terms like “Autopilot” and “Full Self-Driving” exaggerated the technology’s capabilities, potentially leading to a false sense of security among drivers.

Tesla has 90 days to adjust its marketing and clearly communicate the limitations of its self-driving technology to avoid the sales suspension. While the judge also recommended a suspension of Tesla’s manufacturing license at its Fremont, CA, plant, the DMV will not be pursuing that penalty.

“Tesla can take simple steps to pause this decision and permanently resolve this issue – steps autonomous vehicle companies and other automakers have been able to achieve,” said Steve Gordon, the director of the California DMV.

Tesla dismissed the decision in a post on Elon Musk’s X service, calling it regulatory overkill. The company stated that “not one single customer came forward to say there’s a problem” and assured that sales in California would continue uninterrupted.

This news comes as Tesla faces a global downturn in demand, increased competition, and an aging vehicle lineup. Despite these challenges, Tesla’s stock price briefly hit an all-time high earlier this week before settling lower. Investors are increasingly focused on Musk’s AI ambitions, including humanoid robots and a fleet of robotaxis, despite previous delays in delivering on the self-driving promises.

California regulators are not the first to accuse Tesla of overstating its self-driving capabilities. The company has faced lawsuits alleging its mischaracterizations have contributed to accidents, including a recent case in Florida where Tesla was found partly responsible for a fatal crash and ordered to pay over $240 million in damages.

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