As reported by CNBC, the California Department of Motor Vehicles (DMV) has revealed that a California administrative law judge determined Tesla’s marketing of its “Autopilot” and “Full Self-Driving (FSD)” systems to be misleading. Consequently, Tesla faces the possibility of a 30-day suspension of its vehicle sales and manufacturing licenses in California. The DMV alleges that, through advertisements released between 2021 and 2022, Tesla asserted that the Autopilot and FSD features were capable of “handling both short and long-distance trips without driver intervention,” giving the impression that the vehicles had attained full self-driving capability. However, regulators have clarified that these two technologies are, in essence, advanced driver-assistance systems that still necessitate the driver’s full attention and supervision. They argue that Tesla’s claims contravene California’s consumer protection statutes.

Tesla, in response, has contended that its promotional statements are safeguarded by the First Amendment of the U.S. Constitution as expressions of free speech. Furthermore, the company maintains that it has explicitly stated that its vehicles have not yet achieved full self-driving capability and continue to require active driver oversight.

At present, the legal proceedings between the two entities remain unresolved. Should the California government’s request be approved, Tesla’s sales and production framework in California—its largest U.S. market—could incur significant harm, potentially even reshaping the entire landscape of the U.S. electric vehicle market.