Tesla's License at Risk: California Regulators Crack Down on Self-Driving Claims

California regulators threaten to suspend Tesla's sales license due to allegedly deceptive marketing of its self-driving technology. An administrative ruling highlighted exaggerated claims, giving Tesla 90 days to modify its advertising. Despite sales downturns and legal challenges, Tesla's stock remains high due to advances in artificial intelligence.

California regulators are poised to suspend Tesla's license to sell vehicles in the state, citing misleading marketing of its self-driving features. The decision stems from Administrative Law Judge Juliet Cox's ruling that Tesla has engaged in deceptive marketing with terms like 'Autopilot' and 'Full Self-Driving.'

The electric carmaker must adjust its marketing strategies within a 90-day window to maintain its license. Steve Gordon, director of the California Department of Motor Vehicles, emphasized that simple corrective steps could prevent the suspension, which follows California's regulatory actions against Tesla since 2023.

Despite a decline in sales and various legal challenges, Tesla's stock prices remain robust due to investor interest in the company's AI developments and its ambitions for robotaxis. However, Tesla faces criticism and legal repercussions for past accidents linked to its self-driving technology.

(With inputs from agencies.)