California Threatens to Suspend Tesla Sales Over ‘Deceptive’ Sales Language

The company says it won’t comply with an order to change its marketing of ‘self-driving’ features, which could lead to a 30 day sales ban and a possible manufacturing ban in the state.

1 minute read

December 23, 2025, 8:00 AM PST

By Diana Ionescu @aworkoffiction


Tesla factory building in Fremont, California visible behind chain link fence.

Tesla manufactures and tests its cars at its plant in Fremont, California. | Sundry Photography / Shutterstock

California is threatening to suspend Tesla sales for 30 days in the state if the company doesn’t stop using “deceptive terms” like “full self-driving” and “autopilot” in its marketing. 

According to an article by Jibin Joseph in PC Mag, “The issue dates back to 2022, when the DMV filed complaints with the Office of Administrative Hearings, accusing Tesla of misleading customers by marketing its advanced driver assistance system (ADAS) as one that doesn't require human supervision.” 

The DMV has given the company 60 days to take action on its language or face a suspension of its dealer license. Tesla pushed back in an X post, saying they will not implement any changes and that “Sales in California will continue uninterrupted.”

Joseph adds that California could impose a manufacturing ban, which would significantly affect Tesla’s production and robotaxi testing in Fremont.

Wednesday, December 17, 2025 in PC Magazine

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