Wednesday, March 18, 2026

California Threatens Tesla Sales Ban Over Misleading Autopilot Ads

A ruling in California has determined Tesla’s advertising of its autonomous driving features is exaggerated, threatening a 30-day ban on manufacturing and sales if it fails to rectify the issue.

According to the California Department of Motor Vehicles (DMV) on Wednesday, an administrative law judge determined that Tesla’s use of terms like “full self-driving” and “autopilot” to describe its advanced driver assistance features constitutes false advertising.

The judge concluded that such advertising misleads consumers and violates state law, recommending a 30-day suspension of Tesla’s manufacturing and sales licenses.

Following the ruling, the California DMV accepted the court’s ruling but granted Tesla a 60-day grace period to correct its use of these terms.

Tesla issued a statement clarifying that the decision pertains to the use of the term “autopilot,” which the company claims is not an issue for current customers. The company dismissed concerns, stating, “Sales in California will continue uninterrupted.”

This ruling follows a November 2023 complaint by the California DMV, which accused Tesla of falsely claiming in its marketing materials that its driver assistance features were designed to operate without any human intervention.

Since then, Tesla has modified its terminology, opting for “full self-driving (supervision required)” instead of “full self-driving capability,” to emphasize that driver attention and oversight are necessary when using this feature.

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