An administrative law judge in California ruled that Tesla engaged in deceptive marketing of its Autopilot and Full Self-Driving driver-assistance software, creating a false impression of their capabilities in a case brought by the Department of Motor Vehicles. The DMV proposed 30-day suspensions of Tesla’s sales and manufacturing licenses, but stayed both orders for 60 days to allow modifications.
The ruling stems from a years-long investigation by the California DMV into Tesla’s promotional materials and statements about its partial autonomy systems. The judge fully agreed with the DMV’s assessment that Tesla’s marketing misled consumers regarding the level of automation and safety provided by Autopilot and Full Self-Driving features. These systems require constant driver supervision, despite names suggesting higher autonomy.
As a penalty, the judge endorsed the DMV’s request for a 30-day suspension of Tesla’s vehicle sales license in California, according to Bloomberg News. Separately, the judge recommended a parallel 30-day suspension of Tesla’s manufacturing license. Implementation of either suspension awaits the outcome of the 60-day compliance period, during which Tesla must alter or eliminate deceptive language from its materials.
California DMV Director Steve Gordon addressed the decision in a statement, declaring, “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.” He added, “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 responded via a post on X, asserting, “Sales in California will continue uninterrupted.” The company characterized the order as “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.” Tesla indicated no immediate plans to alter its practices beyond potential review of the specific term.
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.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The DMV has specified that Tesla must “take action regarding its use of the term ‘autopilot,’” but provided no further details on required changes. Requests for clarification from the DMV on acceptable modifications or Tesla’s apparent intention to disregard the timeline received no response. Following the 60-day period, Tesla retains the option to appeal the judge’s decision formally. Compliance during this window would result in the suspensions being lifted entirely.
This ruling aligns with prior scrutiny of Tesla’s marketing practices. The company has undergone investigations by the California Attorney General, the U.S. Department of Justice, and the Securities and Exchange Commission, all probing claims that promotions of Autopilot and related systems conveyed misleading information about their autonomous performance.
Tesla has resolved multiple personal civil lawsuits filed by individuals involved in crashes linked to its Autopilot technology. Settlements in these cases addressed allegations that the software’s limitations contributed to accidents, though Tesla maintained the systems functioned as designed with required driver attention.
The decision emerges amid Tesla’s expansion of autonomous vehicle testing. In Austin, Texas, the company operates a small Robotaxi fleet, which over the weekend transitioned by removing safety monitors previously stationed in the driver’s or passenger’s seat. These vehicles provided rides to customers for the preceding six months under supervised conditions.
According to Tesla CEO Elon Musk, the Robotaxi vehicles utilize a distinct version of the company’s driving software, separate from the software deployed in vehicles purchased by individual customers. This differentiation supports Tesla’s ongoing development of fully driverless services distinct from consumer-market offerings.
