A California judge has concluded that Tesla used deceptive marketing strategies for its self-driving features, prompting regulators to recommend that the DMV suspend its licenses to sell and manufacture cars in the state for at least 30 days.
Under the recommendation, Tesla has 90 days to revise its marketing materials or risk facing a sales ban.
Judge Juliet Cox said that the Elon Musk-led company had, for years, misled consumers by promoting its cars’ self-driving capabilities as “Autopilot” and “Full Self-Driving” (FSD). Regulators want the company to clearly state the limits of the features.
Tesla has dismissed the order as “regulatory overkill,” maintaining that its website and manuals clearly state that these self-driving features require active human supervision. After California filed its case against Tesla in 2023, the company began mentioning the same.
However, California’s move highlights ongoing concerns about safety and transparency at Tesla, particularly following several high-profile lawsuits and a recent $240 million jury award stemming from an Autopilot-related crash.
Despite these legal pressures and a 9% dip in auto sales throughout 2025, Tesla’s stock recently hit record highs as investors pivot their focus toward CEO Musk’s long-promised robotaxi fleet and AI ventures.
The company has begun testing driverless robotaxis in Austin, Texas, and has plans to expand to other cities.