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California Hearing Threatens to Suspend Tesla’s Sales License Over Autopilot Claims

An Oakland administrative judge weighs a DMV petition to suspend Tesla’s manufacturing and dealer licenses for 30 days, seeking restitution over alleged misleading marketing of its driver-assistance systems.

A person drives a Tesla Model S on the Embarcadero in 2019. The car company is having a hearing this week with California's DMV, about Tesla's claims of self-driving abilities with its cars.
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FILE - The Tesla logo is displayed at a Tesla dealership, Thursday, March 13, 2025, in Miami. (AP Photo/Lynne Sladky, File)
Visitors at the Tesla booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.)

Overview

  • The five-day hearing in Oakland examines allegations that Tesla’s “Autopilot” and “Full Self-Driving” branding exaggerates the cars’ autonomy.
  • State filings cite four specific product descriptions promising full self-driving and automatic trip routing and parking as misleading.
  • Tesla maintains its systems require active driver supervision and points to in-car warnings to counter false-advertising claims.
  • If licenses are suspended, Tesla would be barred from selling or building vehicles in California for 30 days, threatening its Q3 delivery plans as federal tax credits expire.
  • Tesla is also defending its Autopilot technology in a concurrent federal trial in Miami over a fatal 2019 crash.