A California administrative law judge has ruled that Tesla’s marketing of its Autopilot and Full Self-Driving systems was deceptive, according to the California Department of Motor Vehicles. The judge recommended a 30-day suspension of Tesla’s licenses to sell and manufacture vehicles in the state, citing misleading claims about the capabilities of its driver assistance technology.
The DMV said it has adopted the ruling with a modified penalty, giving Tesla a 60-day window to correct any deceptive or confusing statements. If unresolved, the agency will proceed with a 30-day suspension of Tesla’s license to sell vehicles in California. The DMV said it will not suspend Tesla’s manufacturing license, avoiding disruption to factory operations.
Regulators argued that Tesla’s marketing suggested its vehicles could operate autonomously, despite requiring constant driver supervision. The judge said a reasonable consumer could believe Full Self-Driving allows hands-free operation, which is inaccurate both technically and legally.
Tesla has since renamed the feature Full Self-Driving (Supervised).
. The company said sales in California will continue uninterrupted. Tesla also faces a separate class action lawsuit alleging misleading claims about its AI-based driving technology. The ruling comes as the robotaxi market moves closer to broader deployment, with Waymo expanding services in the U.S., Tesla outlining its own robotaxi ambitions, and Chinese operators scaling rapidly, even as safety, regulation, and cost remain key challenges.
