Tesla’s California sales license at risk over autopilot descriptions

California’s Department of Motor Vehicles adopted an order to suspend Tesla’s license to sell vehicles in the state, then put that order on hold right away. But the hold is temporary. The DMV gave Tesla 90 days to fix the issue and come into compliance.​

State regulators accuse Tesla of misleading consumers through the names and descriptions tied to its driver assistance features, including “Autopilot” and “Full Self-Driving.” And the DMV says the wording can suggest more capability than the system provides. Tesla’s systems remain SAE Level 2 advanced driver assistance, so a human driver is still expected to supervise at all times.​

An administrative law judge recommended a 30-day suspension as a penalty tied to Tesla’s marketing language. But the DMV stayed that suspension and set a 90-day window for Tesla to correct the statements. And DMV Director Steve Gordon said he hoped “Tesla will find a way to get these misleading statements corrected.”​

Tesla denies harm

Tesla said the order is a “consumer protection” action focused on the use of the term Autopilot. And Tesla said “not one single customer came forward to say there’s a problem.” The company added that “sales in California will continue uninterrupted.”​

Tesla has used the terms Autopilot and Full Self-Driving for years. The company added “(Supervised)” to the Full Self-Driving name to reduce confusion about driver responsibility. But California regulators still want clearer corrections in advertising and sales communication tied to Autopilot and FSD.​

At the same time, Tesla is pushing its Robotaxi effort in Texas. This week, vehicles were spotted in Austin operating with no occupants inside. And CEO Elon Musk confirmed that Tesla started testing driverless rides in Austin, with a goal of launching rides “without any supervision” by the end of the year.​

Tesla now has 90 days to address the DMV’s concerns. Then the state can decide if the stayed suspension should take effect. And until that point, Tesla’s vehicle sales in California continue.