- Apr 15, 2026
Staff Report: PNN
A California administrative law judge ruled against Tesla for misleading marketing of its Autopilot and Full Self-Driving (FSD) software. The case was filed by the California DMV.
The judge stated that Tesla exaggerated the software’s capabilities. The company was given 60 days to correct misleading claims before a potential 30-day suspension of car sales. The judge also recommended temporarily suspending Tesla’s production license, though the DMV has kept this on hold.
Tesla said in a statement on X that sales in California would continue and the ruling does not impact them. Past investigations by the California Attorney General, U.S. Justice Department, and SEC also scrutinized Tesla’s FSD marketing.
Analysts warn that suspension could significantly impact Tesla, as California is its largest market, despite major operations now in Austin, Texas.