A US administrative law judge in California has ruled that Tesla used misleading and deceptive language in marketing its “Autopilot” and “Full Self-Driving” (FSD) software, a decision that could lead to the temporary suspension of the company’s vehicle sales and production in the state.

The ruling marks a major turning point in a long-running case brought by the California Department of Motor Vehicles (DMV), which argued that Tesla exaggerated the capabilities of its driver-assistance systems in a way that endangered public safety.

The judge concluded that Tesla’s marketing created a false and inflated impression of autonomy, fostering dangerous overconfidence among drivers. In line with the DMV’s request, the judge recommended suspending Tesla’s vehicle sales in California for 30 days. However, the DMV chose not to immediately enforce the penalty, instead granting Tesla 60 days to revise or remove the misleading language from its marketing materials.

The judge also recommended a 30-day suspension of Tesla’s manufacturing license. This sanction has likewise been put on hold for now, with local sources indicating that both measures could be implemented depending on Tesla’s response.

DMV Director Steve Gordon said the decision confirms California’s commitment to holding all automakers to the highest safety standards. “This ruling affirms that California will continue to protect drivers, passengers and pedestrians,” Gordon said, adding that Tesla could resolve the issue by taking clear and straightforward steps that other automakers have already implemented in the state.

Tesla, however, sought to downplay the decision. In a statement shared on the social media platform X, the company said its vehicle sales in California would continue uninterrupted. Tesla claimed the ruling was merely a “consumer protection” issue related to the use of the term “Autopilot” and insisted that no customer had been harmed.

The DMV declined to respond to questions about Tesla’s statement and did not provide detailed guidance on what specific changes the company is expected to make.

California regulators have accused Tesla for years of marketing its driver-assistance systems as if they were highly autonomous, arguing that this led drivers to place excessive trust in the technology. According to the DMV, this overconfidence contributed to numerous accidents and multiple fatalities.

In its defense, Tesla argued that its marketing language is protected under freedom of speech. Nevertheless, the company has faced numerous individual lawsuits related to crashes involving Autopilot, some of which were settled out of court.

Tesla’s marketing practices are also under separate investigation by the California Attorney General’s Office, the US Department of Justice and the Securities and Exchange Commission (SEC).

Even a temporary sales ban could have serious consequences for Tesla, as California remains its largest market in the United States. A suspension of the production license would directly affect the Fremont factory, where all North America–bound Model 3 vehicles are still manufactured, despite Tesla having moved its headquarters to Austin, Texas.

The ruling comes as Tesla is attempting to expand its robotaxi service in Austin. Over the weekend, safety operators were reportedly removed from test vehicles. Tesla CEO Elon Musk has previously acknowledged that the software used in these vehicles is different and more advanced than the version available to customers.

The decision has intensified scrutiny of Tesla’s claims about autonomous driving and raised broader questions about regulation, consumer protection and public safety in the rapidly evolving electric vehicle sector. (ILKHA)