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Tesla Faces Sales Blackout in California
18 Dec
Summary
- California may suspend Tesla's sales license early next year.
- Regulators cite misleading marketing of 'Autopilot' and 'Full Self-Driving'.
- Tesla has 90 days to change marketing to avoid sales suspension.
California regulators are considering a significant penalty for Tesla: a potential 30-day suspension of its license to sell electric vehicles in the state, beginning early next year. This action stems from a judge's conclusion that the Elon Musk-led company has engaged in deceptive marketing practices for years.
The ruling by Administrative Law Judge Juliet Cox found that Tesla's use of terms like 'Autopilot' and 'Full Self-Driving' misled consumers about the technology's true capabilities. While the judge also recommended suspending Tesla's manufacturing license, state regulators have decided not to pursue that specific penalty.
Tesla now has a 90-day period to implement changes that clearly communicate the limitations of its autonomous driving systems. Failure to do so could result in the suspension of sales in California, despite Tesla's previous adjustments to its marketing language following the initial regulatory action in 2023.
