Tesla Must Change Autopilot Marketing or Lose California Sales for 30 Days

An administrative law judge in California has determined that Tesla's advertising for its Autopilot and Full Self-Driving (FSD) driver assistance features misled consumers by implying greater autonomy than the systems provide.

The ruling, issued in a case filed by the California Department of Motor Vehicles (DMV) in 2022, recommends 30-day suspensions of Tesla's dealer and manufacturer licenses in the state.

The DMV adopted the judge's findings but stayed both suspensions. It granted Tesla 60 days to address misleading language, particularly around the term "Autopilot," before potentially enforcing the sales ban. The manufacturing license suspension remains indefinitely stayed.

DMV Director Steve Gordon stated the agency aims to hold manufacturers to high safety standards while allowing Tesla time to comply. He noted the decision focuses on protecting road users without citing specific consumer complaints.

Tesla responded on X, asserting sales in California continue uninterrupted and describing the case as concerning the "Autopilot" name without direct customer issues.

The case, heard in July 2025 with a proposed decision in November, alleges Tesla's marketing created overconfidence in the systems, contributing to crashes. Tesla argued its statements were protected speech and accurately described the features.

A 30-day sales halt in California, Tesla's largest U.S. market, could impact deliveries. The Fremont factory produces key models for North America.

The ruling coincides with Tesla advancing unsupervised Robotaxi tests in Austin using a separate FSD version. Tesla faces ongoing federal probes and civil suits over similar marketing claims.

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