Tesla Risks 30-Day Sales Halt in California over Misleading Autopilot Ads

A California administrative law judge has determined that Tesla misled consumers with advertising for its “Autopilot” and “Full Self-Driving” (FSD) technology, the state’s Department of Motor Vehicles announced this week.

Under the order, Tesla could see both its sales and manufacturing licenses in California suspended for 30 days.

The ruling follows the DMV’s 2022 allegations that Tesla’s promotional material implied its vehicles could function autonomously, even though driver supervision is still required.

However, DMV Director Steve Gordon stated at a Tuesday press conference that Tesla would be granted a 90-day window to amend or remove any misleading or ambiguous language regarding Autopilot and FSD before a license suspension takes effect.

The director further clarified that the manufacturing license suspension will be stayed, ensuring there is no disruption to Tesla’s production operations in California.

Since the initial accusations were made in 2022, Tesla has changed the name of its advanced driver assistance feature to “Full Self-Driving (Supervised),” amid ongoing scrutiny of its marketing practices.