By John 
California regulators have issued a rare warning to Tesla, telling the automaker it could face a suspension of its right to sell vehicles in the state if it does not change how it advertises its driver assistance technology.
The California Department of Motor Vehicles has ordered Tesla to revise its marketing language related to its “Autopilot” and “Full Self-Driving Capability” features, citing concerns that the branding misleads consumers into believing the vehicles can operate autonomously. The action follows years of criticism and a court ruling last month that found the company’s advertising practices violated state law.
Under the order, Tesla has 90 days to update its advertising. If the company fails to comply, regulators warned it could face a 30-day suspension of its license to sell vehicles in California, one of its most important markets.
State officials argue that the terminology used by Tesla suggests full autonomy, even though drivers are required to remain seated behind the wheel, stay alert, and be ready to take control at all times. Transportation experts have said the technology’s operation can appear deceptively simple, particularly to drivers unfamiliar with how Tesla’s systems function.
Some Tesla owners have echoed those concerns, saying the features can be enjoyable but are not equivalent to fully autonomous vehicles, especially when compared to systems designed to operate without human input.
Tesla has pushed back against the DMV’s decision, characterizing it as excessive and maintaining that its sales in California will continue uninterrupted. The company has long argued that its owner’s manuals and online materials clearly state that human supervision is required.
The warning arrives as Tesla faces broader challenges. The automaker has experienced a global slowdown in demand amid increased competition, an aging vehicle lineup, and backlash tied to Elon Musk’s recent political involvement. Although Tesla refreshed its Model Y and introduced lower-priced versions of some models, the company reported auto sales down 9% through the first nine months of the year.
Despite those declines, Tesla’s stock surged to a record high during early trading Wednesday before retreating later in the session. Investors have increasingly focused on Musk’s ambitions in artificial intelligence, humanoid robotics, and robotaxi development rather than current vehicle sales.
Tesla has begun limited robotaxi testing in Texas, initially with human supervisors, and recently disclosed early testing without a safety monitor. Regulators and courts have continued to scrutinize the company’s claims, particularly following lawsuits tied to crashes involving Autopilot. Earlier this year, a Florida jury held Tesla partially responsible for a fatal crash and ordered the company to pay more than $240 million in damages.
California officials say the advertising order is aimed at consumer protection and roadway safety as the debate over self-driving technology continues to intensify.
Shawn Henry 
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