California May Halt Tesla Sales Over "False Advertising"

California is threatening to ban Tesla sales in the state for 30 days over what regulators call false advertising. The California Department of Motor Vehicles says the term "Autopilot" misleads consumers about what Tesla's driver assistance system can actually do.

The dispute centers on whether Tesla's vehicles live up to the "Autopilot" name. The DMV argues the cars aren't truly autonomous and can't operate without driver supervision, making the branding deceptive. Tesla and CEO Elon Musk have made ambitious claims about their vehicles' capabilities over the years, though the company also warns drivers to stay alert and ready to take control even when using the assistance features.

The DMV first brought action against Tesla over the Autopilot terminology in 2023. The two sides haven't been able to reach an agreement since then, and now Tesla would need a court to intervene if it wants to keep selling cars in California.

Tesla pushed back on the DMV's action on Tuesday, saying no customers have come forward to complain about being misled. The company maintains that sales in California will continue without interruption.