The DMV gives Elon Musk’s EV company 60 days to change how it promotes Autopilot and Full Self-Driving features or face a 30-day sales ban.
Updated Dec 17, 2025, 12:00pm EST Tesla will be temporarily unable to sell new electric vehicles in California for a month unless the carmaker led by billionairechanges what the state and a judge determined are deceptive marketing practices for its Autopilot and Full Self-Driving features.
Administrative Judge Juliet Cox ruled that the Austin-based company has for years misled buyers with regard to the level of automation Tesla’s currently have, leading them to think its vehicles are more capable of driving themselves than they really are, the Department of Motor Vehicles said in a statement. She recommended a 30-day sales and production suspension in California, Tesla’s biggest U.S. market, as punishment. The DMV isn’t immediately imposing the sales ban and instead said it’s given Tesla 60 days to modify marketing language for Autopilot and FSD. The agency said it doesn’t intend to suspend production at Tesla’s Fremont, California plant. “The DMV’s decision today confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers and pedestrians protected,” DMV Director Steve Gordon said in an emailed statement. “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 in California's nation-leading and supportive innovation marketplace.” Tesla didn’t respond to a request for comment, but the company complained about the DMV’s action on X, the social media platform owned by Musk. “This was a ‘consumer protection’ order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem,” it said inFor the latest in cleantech and sustainability news,The first of its kind in the U.S. move comes months after hearings in Sacramento in which technical experts on autonomous vehicles detailed how the Tesla features require nearly constant monitoring by drivers and don’t have the capabilities of robotaxis, such as those operated by Waymo. Musk, the world’s wealthiest person, has said it’s a priority for Tesla to lead in autonomous driving, though it’s taking a relatively low-cost approach to do so, especially with regard to sensors. Tesla uses a camera-only system, avoiding more sophisticated laser lidar and radar units that help autonomous vehicles see in all lighting conditions and in 3D. Federal safety investigators recentlyLosing 30 days of sales in California could potentially cut Tesla’s revenue by tens of millions of dollars in 2026, and would come at a time when its EV sales volume is already declining. It also comes as the company aims to create a robotaxi service to rival Waymo’s. It’s been giving rides to paying customers in Austin with a 29-vehicle fleet, though those rides have a human safety driver in the front. It also operates a ridehail service in San Francisco, where Tesla lacks state permission to operate actual robotaxis. The company has also begun testing fully autonomous versions of the robotaxi in Austin — overseen by remote operators — though with no paying customers for now. Investor excitement over Tesla’s self-driving technology helped pump up the stock this week, with the shares closing at an all-time high of $489.88 on Dec. 16. They’re down about 3% on Wednesday to $476.67 in afternoon trading.
California Autopilot FSD Self-Driving DMV Elon Musk Robotaxi
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sex trafficking in L.A. made worse by California law, Republican candidate for governor saysCalifornia gubernatorial candidate Steve Hilton on Monday visited a notorious sex-trafficking corridor in South L.A. and vowed to rescind a law that decriminalized loitering, a measure critics say endanger, not help, victims.
Read more »
A Self-Driving Robot Snowblower Can Clear Your Driveway This WinterTalia has been a professional writer since 2018. She got her start at The Nerd Stash, covering consumer technology and entertainment.
Read more »
Elon Musk’s Tesla faces penalties after judge flags deceptive Autopilot claimsA California judge said Tesla misled customers about Autopilot and Full Self-Driving, leading the California Department of Motor Vehicles to consider a temporary sales suspension.
Read more »
Tesla misled customers about self-driving features, judge rulesCalifornia’s DMV adopted the findings of an administrative judge and ordered Elon Musk’s Tesla to rename ‘Autopilot’ or face a 30-day sales suspension in the state.
Read more »
California threatens Tesla with 30-day suspension of sales license for deceptive self-driving claimsCalifornia regulators are threatening to suspend Tesla’s license to sell its electric cars in the state early next year unless the automaker tones down its marketing tactics for its self-driving features after a judge concluded the Elon Musk-led company has been misleading consumers about the technology’s capabilities.
Read more »
California threatens Tesla with 30-day suspension of sales license for deceptive self-driving claimsCalifornia regulators are threatening to suspend Tesla’s license to sell its electric cars in the state early next year unless the automaker tones down its marketing tactics for its self-driving features after a judge concluded the Elon Musk-led company has been misleading consumers about the technology’s capabilities.
Read more »