California Gives Tesla 3 Months to Fix Self-Driving Claims

Tesla just got a three-month countdown clock from California regulators over how it sells the idea of "self-driving" cars, the Wall Street Journal reports. An administrative law judge found the company misled buyers by suggesting its vehicles could operate autonomously, prompting the state's Department of Motor Vehicles to move toward a 30-day suspension of Tesla's dealer and manufacturing licenses. The misleading marketing has to do with Tesla's "Autopilot" and "Full Self-Driving" systems, the latter of which has since been renamed "Full Self-Driving (Supervised)," CNBC reports. In 2022, when the DMV first made the accusations, the department argued that the so-called "autonomous" modes still required a driver at the wheel, paying attention and prepared to take over steering or braking at a moment's notice.

On Tuesday, the DMV said it adopted the judge's proposed decision of a 30-day suspension—but then put key parts of it on hold. The dealer license suspension is paused for 90 days while Tesla is given a chance to bring its marketing and policies into line with state rules. The manufacturing license suspension, meanwhile, has been put on ice indefinitely, meaning Tesla's factories in the state can keep operating for now. "We want to be fair to them and give them the chance to find a resolution," DMV director Steve Gordon said.