Tesla Sales Could Be Suspended In California

Newsweek

22-07-2025

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The California Department of Motor Vehicles (DMV) has filed a lawsuit seeking to suspend Tesla's sales and manufacturing operations in California for at least 30 days.
The lawsuit, first filed in 2022 and amended in 2023, accuses Tesla of misleading consumers about the self-driving capabilities of its 'Autopilot' and 'Full Self-Driving' features, both of which are highly-advertized selling points for Tesla vehicles.
Newsweek contacted California's DMV and Tesla for comment on this story via email.
Why It Matters
California represents a critical market for Elon Musk's company, as the largest state by population. Tesla's success here is helped greatly by the San Francisco market, which leans heavily towards electric vehicles and new technology.
A 30-day sales ban could significantly disrupt the company's revenue and reputation. The DMV's lawsuit highlights broader scrutiny on how automakers market semi-autonomous features, and its outcome may influence industry standards nationally.
What To Know
Representatives of Tesla and the DMV will meet this week in California to discuss the 30-day pause on sales.
In the court filings, California attorneys have picked out four phrases or product descriptions from Tesla's website which the state believes are misleading to the point of being false advertising.
Phrases like 'autopilot', 'full self-driving capability' and the claim that Tesla vehicles are "designed to be able to conduct short and long-distance trips with no action required by the person in the driver's seat" were all pointed out in court filings by California's Department of Justice representatives.
The exterior of the Tesla automotive company manufacturing facility on September 18, 2023 in Fremont, California.
The exterior of the Tesla automotive company manufacturing facility on September 18, 2023 in Fremont, California.
Getty Images
Attorney General Rob Bonta, writing on July 17 in a statement on the lawsuit, said: "These labels and descriptions represent specifically that respondent [Tesla]'s vehicles will operate as autonomous vehicles, which they could not and cannot do."
Tesla's legal team has said the company "has always made clear" that the cars it makes are not technically fully autonomous, because they require "active driver supervision" from a human.
What People Are Saying
In statements that the DMV highlighted as legally questionable, Tesla advertising said: "The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver's seat.
"From Home – All you will need to do is get in and tell your car where to go. If you don't say anything, your car will look at your calendar and take you there as the assumed destination. Your Tesla will figure out the optimal route, navigating urban streets, complex intersections and freeways. To your Destination -When you arrive at your destination, simply step out at the entrance and your car will enter park seek mode, automatically search for a spot and park itself. A tap on your phone summons it back to you."
What Happens Next
The outcome of the DMV's lawsuit could result in a 30-day suspension of Tesla's dealer and manufacturing licenses in California. Such a measure would affect Tesla's short-term sales and could lead to further regulations on how automakers promote advanced driver assistance systems.