California regulators have stepped back—at least for now—from a move that could have temporarily shut down Tesla vehicle sales in the state, granting the automaker a 90-day window to address concerns over how it markets its driver-assistance technology.
The California Department of Motor Vehicles (DMV) has placed a hold on an order that would have suspended Tesla’s sales license, offering the company time to modify or defend the use of the terms “Autopilot” and “Full Self-Driving” before any penalties take effect.
The decision follows a proposed ruling by Administrative Judge Juliet Cox, who recommended suspending both Tesla’s manufacturing and sales licenses in California for 30 days. While the DMV adopted the judge’s proposals, it immediately paused their enforcement. According to DMV Director Steve Gordon, Tesla’s sales license has been stayed for 90 days, while the suspension of its manufacturing license has been put on hold indefinitely.
“This gives Tesla one more chance to be able to remedy the situation,” Gordon said during a media briefing, adding that he hoped the company would “find a way to get these misleading statements corrected.” (via The Guardian)
At the heart of the case is the DMV’s claim that Tesla’s branding and advertising overstated the capabilities of its advanced driver-assistance systems. Regulators argue that names like Autopilot and Full Self-Driving could lead consumers to believe Tesla vehicles are autonomous, when they still require active human supervision.
The DMV originally filed its complaint in 2022, pointing to marketing language that suggested Tesla vehicles could complete trips with little or no driver involvement.
Tesla has consistently rejected that characterization. During earlier hearings, the company’s legal team argued that Tesla has always been clear about the limitations of its technology. “Tesla has never misled consumers. Never. And not even close,” one of the company’s lawyers said at a hearing.
The DMV’s current order focuses primarily on the term “Autopilot,” with Gordon saying the agency wants Tesla to clarify that its systems are advanced driver-assistance features, not automated or autonomous driving systems. If Tesla fails to make changes within the 90-day window, the state could move forward with a 30-day suspension of vehicle sales in California—Tesla’s largest U.S. market.
Tesla, for its part, says operations will continue as normal. In a statement on X, the company described the action as “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.”
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.
— Tesla North America (@tesla_na) December 17, 2025
Sales in California will continue uninterrupted.
