California did not suspend Tesla’s sales license over its Full Self-Driving advertising. The California Department of Motor Vehicles (DMV) adopted findings that Tesla’s former Autopilot and “Full Self-Driving Capability” marketing violated state law, but after Tesla made corrective changes, the DMV decided not to suspend its dealer license. Separately, a federal court certified limited California consumer classes in a lawsuit over FSD representations. That case is stayed while Tesla appeals the class-certification order.
Did California suspend Tesla sales over FSD advertising?
No. The DMV’s December 2025 decision adopted an administrative law judge’s violation findings but adjusted the proposed penalties. The judge had recommended 30-day suspensions of Tesla’s manufacturer and dealer licenses. Instead, the DMV permanently stayed the manufacturer-license suspension and gave Tesla 60 days to address its use of “Autopilot.” If Tesla failed to do so, it could face a 30-day dealer-license suspension.
In February 2026, the DMV reported that Tesla had taken corrective action and said it would not suspend the dealer license. Reported changes included using “Full Self-Driving (Supervised)” and stopping Autopilot marketing in California. The agency’s announcement is available in its December 2025 decision notice and February 2026 compliance update.
What did the DMV find about Tesla Autopilot and Full Self-Driving?
The DMV found that Tesla’s written marketing, beginning in May 2021, used terms including “Autopilot” and “Full Self-Driving Capability,” as well as the statement: “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.” The agency concluded that vehicles equipped with those advanced driver-assistance features could not operate as autonomous vehicles when the advertisements ran or when the DMV issued its decision.
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This was an agency finding in a state vehicle-licensing proceeding—not a jury verdict. California DMV Director Steve Gordon said, “The DMV is committed to safety on California’s roadways.” The DMV’s account of its findings and decision is in its case announcement.
Is the Tesla FSD class action moving forward?
A separate federal consumer lawsuit, In re Tesla Advanced Driver Assistance Systems Litigation, has cleared one procedural hurdle but is not currently proceeding in the district court. In August 2025, Judge Rita F. Lin certified limited California classes concerning alleged FSD representations. Tesla received permission to appeal that certification, and the district court stayed the case on January 5, 2026, while the appeal proceeds.
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The court’s certification order describes allegations that Tesla represented its vehicles had the hardware needed for full self-driving and that a Tesla would be able to drive itself across the country within the following year. Those are allegations, not established proof that Tesla is liable. Class certification decides whether specified claims may proceed on behalf of a group; it is not a judgment that the claims are true.
Tesla’s 2025 annual filing says the Ninth Circuit granted permission to appeal on December 18, 2025, and that the company’s opening brief was due March 12, 2026. The sources available here do not establish a later appellate decision. The certification order is available on the federal case docket; Tesla’s annual filing is available through the SEC company filings page.
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How the DMV case differs from the federal lawsuit
| Issue | DMV administrative case | Federal consumer class action |
|---|---|---|
| Forum | California DMV licensing proceeding | Federal court |
| Focus | Whether Tesla’s marketing violated California rules governing vehicle manufacturers and dealers | Consumer claims under California’s Unfair Competition Law, Consumer Legal Remedies Act, False Advertising Law, and common-law theories |
| Possible consequences | Corrective marketing and potential vehicle-license suspensions | Consumer litigation on behalf of the certified, limited California classes |
| Status | The DMV reported corrective action and did not suspend Tesla’s dealer license | Limited classes certified; district case stayed pending Tesla’s appeal |
The two proceedings address related advertising but have different parties, legal questions, and remedies. The DMV’s findings do not decide the consumers’ claims, and class certification does not reverse or affirm the DMV’s action.
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- Good Grip: The anti-slip texture on the inside of the steering wheel cover and custom fit allows the cover to grip the steering wheel securely and prevent slippage.
- Skin-friendly Leather: Selected high-quality materials coupled with exquisite craftsmanship, carbon fiber texture is clear and three-dimensional, upgrading the steering wheel has become so simple.
- Service & Warranty: Steering wheel cover for Tesla Yoke steering wheel have 12 months warranty. If you have any questions, please feel free to contact us.
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