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California: Tesla Has Engaged In False Advertising, Has To Suspend Vehicle Production & Sales If Problem Not Fixed - CleanTechnica

California: Tesla Has Engaged In False Advertising, Has To Suspend Vehicle Production & Sales If Problem Not Fixed - CleanTechnica
Source: cleantechnica
Author: @cleantechnica
Published: 12/17/2025

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A California judge has ruled that Tesla’s use of the terms “Autopilot” and “Full Self Driving” constitutes false advertising, as these labels misleadingly suggest that Tesla vehicles can operate autonomously without constant human supervision. The judge proposed suspending Tesla’s license to manufacture and sell vehicles in California for 30 days. While the California Department of Motor Vehicles (DMV) agreed with this proposal, it granted Tesla a 90-day grace period to correct its marketing practices before any suspension of its sales license would take effect. The manufacturing license suspension is currently on hold indefinitely. Consequently, Tesla will not have to halt production or sales but will need to rename and rebrand these features in California, and potentially beyond. This ruling aligns with previous legal challenges Tesla has faced over similar claims, including cases in Europe. California DMV director Steve Gordon emphasized giving Tesla “one more chance” to address and correct the misleading statements before penalties are enforced. Tesla’s legal defense, claiming it has never misled consumers

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