Tesla faces possible sales ban in California over 'misleading' Autopilot marketing
DMV threatens ban on Tesla sales over 'deceptive' advertising
The Calif. Dept. of Motor Vehicles this week threatened a ban on all Tesla sales because it said the car maker uses deceptive marketing around its "autopilot" feature that could lead to harm.
SAN JOSE, Calif. - For a decade, Tesla has sold drivers on the idea that its vehicles could nearly drive themselves. That messaging helped the company’s Fremont plant produce between 500,000 and 650,000 vehicles a year. But selling those cars in California may soon become more difficult.
This week, the California Department of Motor Vehicles threatened to ban Tesla vehicle sales in the state, saying the company’s marketing of its driver-assistance features is deceptive.
"Most people wouldn’t think about the DMV intervening in something as substantial as Tesla sales, but the reality is that’s part of the DMV’s agreement," said Dr. Eric Goldman, director of the High Tech Law Institute at Santa Clara University.
DMV: Terms like ‘Autopilot’ are misleading
What they're saying:
In a statement following an administrative law judge’s ruling, the DMV said: "Tesla's use of the terms 'Autopilot' and 'Full Self-Driving Capability' to describe its vehicles' Advanced Driving Assistance Features (ADAS) is misleading and violates state law."
Tesla’s Autopilot system can control the vehicle and use sensors to maintain speed and lane position, but drivers must remain attentive.
"There are some Tesla drivers who have not understood that or who have been lulled into a false sense of security," Goldman said.
Several high-profile crashes, including a 2018 fatal collision in Mountain View on U.S. 101, prompted Tesla to clarify what Autopilot can and cannot safely do.
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Tesla pushes back on DMV threat
The other side:
In response to the DMV’s threat, Tesla wrote on X: "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."
At charging stations in San Jose’s College Park neighborhood on Wednesday, some Tesla owners said they never were under a false illusion that the feature provided full self-driving capability.
"You still need your two hands," said Adline, a Tesla Model 3 owner. "If you don’t put your two hands on the steering wheel, you’re gonna get a strike."
The potential ban also carries a political component. Gov. Gavin Newsom has waged a month-long war against President Donald Trump and Elon Musk, creating an added layer of scrutiny, experts say.
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"It’s good for him politically," said Melissa Michelson, a Menlo College political scientist. "It puts California back on the national radar in opposition to Tesla, which is associated with Elon Musk, who is associated with DOGE and President Trump."
The governor’s office said Wednesday the DMV’s move was "made independently from our office."
Next steps for Tesla
What's next:
Tesla can appeal the ruling or revise its marketing language around Autopilot.
The DMV has given the company 30 days to respond, after which a potential ban could take effect 60 days later.