Tesla is encountering difficulties that are not linked to a recall or falling sales. A judge in California has enforced a 30-day suspension on Tesla’s operations in the state due to its marketing of “Autopilot” for its driver assistance systems. This suspension is set to commence on Jan. 15, but Tesla has a period of 60 days to either stop using “Autopilot” or revise the system.

Tesla asserts that sales will not be impacted. Recently, the company released a video on X featuring a Tesla robotaxi operating in Austin, Texas without any drivers or passengers, captioned “Just saying.”

Legal documents indicate that the California DMV contends that “Autopilot” and “Full Self-Driving Capability” (FSD) inaccurately depict the vehicle’s level of autonomy. The DMV’s filing demands that Tesla rename its advanced driver assistance system (ADAS) to more accurately reflect its functionalities.

This is based on the NHTSA’s Levels of Automation, where Level 0 indicates no autonomy, and Level 5 signifies complete autonomy. Autopilot and FSD are classified as Level 2, and the court asserts they should be rated Level 3 or above to validate their designations. The ruling compels Tesla to elevate its systems to Level 3 or discontinue the use of “Autopilot.”

Judge Juliet E. Cox endorsed the DMV, enforcing a 30-day business suspension for Tesla. Tesla intends to defy the court ruling, claiming it is a “consumer protection” matter without any customer grievances.

Per TechCrunch, the judge expected pushback, noting that the DMV’s jurisdiction over vehicle advertising does not necessitate evidence of deceit or damage.

Should Tesla fail to comply within 60 days, the ban will persist, and Tesla will incur additional penalties for selling vehicles in the state.

Tesla’s legal setback is part of numerous cases in 2025 regarding Autopilot-related incidents. In July, the family of Naibel Benavides filed a lawsuit in Miami, Florida, following a deadly Autopilot incident. The jury deemed Tesla liable, awarding more than $240 million in damages, representing the first instance where Tesla was found partially liable for an Autopilot accident.

Nonetheless, evidence indicates that driver-assisted and autonomous vehicles may be safer than conventional ones.