Why is Tesla facing a sales suspension in California?

Tesla faces a potential sales suspension in California because the DMV accused it of misleading consumers with its marketing for Autopilot and Full Self-Driving.

What did the California DMV accuse Tesla of?

The California DMV accused Tesla of using deceptive language to advertise its Autopilot and Full Self-Driving features, implying higher autonomous capabilities.

How much of Tesla's US sales are in California?

California accounts for nearly a third of Tesla's total sales within the United States.

Home / Business and Economy / Tesla Faces California Sales Suspension Over Ad Claims

Tesla Faces California Sales Suspension Over Ad Claims

17 Dec, 2025

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Summary

California judge rules Tesla sales may be suspended for 30 days.
DMV accused Tesla of misleading marketing for Autopilot/FSD.
California represents nearly a third of Tesla's US sales.

Tesla Faces California Sales Suspension Over Ad Claims

A significant ruling by a California administrative law judge could lead to a 30-day suspension of Tesla's sales within the state. The California Department of Motor Vehicles had previously accused the electric vehicle manufacturer of misleading consumers through its advertising of Autopilot and Full Self-Driving technologies. These claims suggested a level of autonomous driving capability that vehicles did not possess.

While the judge has agreed with the DMV's assessment of deceptive marketing, Tesla is being granted a 90-day period to rectify the situation. During this time, the company must remove any untrue or misleading language from its product marketing materials. A sales and manufacturing suspension would only be implemented if Tesla fails to comply within this grace period.