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Autonomous Driving · Regulation · Sales License · Tesla
California regulators are threatening Tesla with a 30-day suspension of its sales license in the state, following an Administrative Law Judge's ruling that the automaker engaged in deceptive marketing practices regarding its "Autopilot" and "Full Self-Driving" features, requiring changes within 90 days.
Administrative Law Judge Juliet Cox determined Tesla engaged in deceptive marketing for years, recommending the sales license suspension and a manufacturing license suspension, though California regulators will not impose the latter. Tesla has a 90-day window to clarify the limits of its self-driving technology, having already added wording in 2023 to emphasize human supervision.
Steve Gordon, director of the California Department of Motor Vehicles, stated Tesla can easily resolve the issue. This regulatory action occurs amidst a global downturn in demand, increased competition, and a 9% decrease in Tesla's auto sales from 2024 through the first nine months of 2025.
Despite these challenges, Tesla's stock touched an all-time high of US$495.28 before falling below US$470, reflecting investor focus on Elon Musk's efforts in artificial intelligence and robotaxi development. Tesla has begun testing robotaxis without a safety monitor, but faces ongoing scrutiny and lawsuits, including a Miami jury ordering US$240 million in damages for a lethal crash involving Autopilot.
