California threatens Tesla with sale suspension over marketing practices

by | Dec 17, 2025 | World

California regulators are threatening to suspend Tesla’s licence to sell its electric cars in the state early next year unless the car maker tones down its marketing tactics for its self-driving features after a judge concluded that the Elon Musk-led company has been misleading consumers about the technology’s capabilities.The potential 30-day blackout of Tesla’s sales in California in the United States is the primary punishment being recommended to the state’s Department of Motor Vehicles in a decision released late on Tuesday.Recommended Stories list of 4 itemsend of listThe ruling by Administrative Law Judge Juliet Cox determined that Tesla had for years engaged in deceptive marketing practices by using the terms “Autopilot” and “Full Self-Driving” to promote the autonomous technology available in many of its cars.After presiding over five days of hearings held in Oakland, California, in July, Cox also recommended suspending Tesla’s licence to manufacture cars at its plant in Fremont, California. But California regulators will not impose that part of the judge’s proposed penalty.Tesla will have a 90-day window to make changes that more clearly convey the limits of its self-driving technology to avoid having its California sales licence suspended.After California regulators filed its action against Tesla in 2023, the Austin, Texas-based company already made one significant change by putting in wording that made it clear its Full Self-Driving package still required supervision …

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