California Seeks to Ban Tesla Sales Over Ad Claims

Jul. 22, 2025 | |

Officials with the California Department of Motor Vehicles have escalated their campaign against Tesla Inc., claiming the Austin, Texas-based EV maker has persistently misrepresented the way vehicles equipped with “Autopilot” and “Full Self-Driving Capability” actually work and should no longer be allowed to sell them in the nation’s largest EV market.

As Electrek’s Fred Lambert reports, DMV officials want to suspend Tesla’s California dealer license for 30 days, advancing a yearslong dispute over whether the factory is purposely deceiving customers. The matter will be debated in hearings this week.

“[A suspension] would have devastating effect on Tesla’s performance this quarter as the automaker is expected to deliver a record number of cars in the U.S. due to the imminent end of the federal tax credit and California is by far Tesla’s biggest market in the U.S.,” Lambert writes.

Read more at Electrek