A California administrative law judge has ruled that Tesla misled consumers with its marketing of Autopilot and Full Self-Driving (FSD) capabilities, and the company could face a suspension of up to 30 days on selling and manufacturing cars in the state, according to the California Department of Motor Vehicles (DMV).
Steve Gordon, director of the DMV—the agency that filed the false advertising complaint against Tesla in 2022—stated that Tesla will have 90 days to modify or remove any language that is deceptive or confusing regarding Autopilot and FSD. If changes aren’t made, the DMV may proceed with the suspension of Tesla’s sales license. Importantly, the DMV will hold off on suspending Tesla’s manufacturing license to avoid interrupting the company’s factory operations in California.
Tesla’s stock closed at a record high on Tuesday, buoyed by renewed optimism on Wall Street about the company’s Robotaxi ambitions, despite a broader dip in EV sales.
This is developing news. Check back for updates.
