Tesla's stock price experienced a brief 2.2% decline in after-hours trading. According to reports, the California Department of Motor Vehicles (DMV) in the United States has leveled accusations against Tesla, alleging that the company misled consumers in its marketing of driver-assistance technology. As a result, the DMV is contemplating a 30-day suspension of Tesla's sales operations within California.

California regulatory authorities have highlighted that, during Tesla's promotional campaigns for Autopilot and Full Self-Driving (FSD) systems between 2021 and 2022, the company made claims suggesting that vehicles equipped with these technologies could undertake both short and long-distance journeys without any driver intervention. Such assertions, according to the regulators, amount to false or misleading statements. Should the proposed penalty be enforced, Tesla's business operations in California—a key market for the automaker—would face a substantial setback.