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Tesla will face a 30-day sales ban in California if it doesn't stop using deceptive terms like "autopilot" and "full self-driving" in its marketing campaigns, the state's Department of Motor Vehicles (DMV) said on Tuesday.
The issue dates back to 2022, when the DMV filed complaints with the Office of Administrative Hearings, accusing Tesla of misleading customers by marketing its advanced driver assistance system (ADAS) as one that doesn't require human supervision. Those ADAS systems don't support fully autonomous driving to date, the DMV says.
A hearing in the case was held in July, and a state administrative law judge proposed a decision in November. The decision was subject to review by the DMV, which has now adopted it with a few modifications.
The DMV says Tesla used deceptive marketing language and should face a 30-day suspension of its California sales and manufacturing licenses. The agency, however, has temporarily stayed the sales order and permanently blocked the manufacturing order to give Tesla a chance "to take action regarding its use of the term 'autopilot.'"
If the automaker doesn't act on the language in the next 60 days, it will be subject to the 30-day suspension of its dealer license, the DMV said in a statement.
Tesla, however, refuses to implement these changes. "This was a 'consumer protection' order about the use of the term 'Autopilot' in a case where not one single customer came forward to say there's a problem. Sales in California will continue uninterrupted," it said in an X post.
If both parties stick to their guns, it could be a huge blow for Tesla. As TechCrunch notes, California is the company’s biggest market, and even a temporary ban could affect its business, which has seen a big slump this year.
Things could get worse if the issue escalates and the California DMV imposes a manufacturing ban. Tesla makes thousands of its vehicles in Fremont and also tests its robotaxis there.