California regulators are threatening to halt Tesla vehicle sales in the state for 30 days, arguing the company’s use of the term “Autopilot” amounts to false advertising.
The California Department of Motor Vehicles said Tesla’s driver assistance system does not meet the expectations implied by the name.
Tesla's sales in California are set to be suspended for 30 days as a penalty for allegedly misleading consumers about its driver-assistance technology, according to the head of the state’s motor vehicles department https://t.co/MQyk4tq7Pk
— Bloomberg (@business) December 16, 2025
The DMV paused immediate enforcement for 90 days to allow further negotiations. Without an agreement, Tesla may need court intervention to block the action.
The case dates back to 2023 and follows an administrative law judge’s finding that allowed the state to suspend sales.
Tesla pushed back, saying no customers complained and that sales would continue. The company has long warned drivers to remain alert while using Autopilot.
FALSE!
— Governor Newsom Press Office (@GovPressOffice) December 17, 2025
This was an agency decision made independently from the Governor (who was not involved) following an order from an administrative law judge.
Additionally, Tesla has 90 days to find a solution and stop misleading customers — as every other automaker has.
There is no… https://t.co/9yhOPDHl1C
Regulators stressed the dispute centers on marketing, not safety. Still, Tesla’s autonomous technology has faced multiple federal investigations and a recent jury verdict holding the company liable in a fatal crash.
California is Tesla’s largest US market and home to a major factory.
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TIPP Staff
