The state of California is moving to ban the sale of Tesla vehicles
Published on Jul 22, 2025 at 3:02 PM (UTC+4)
by Ben Thompson
Last updated on Jul 22, 2025 at 5:17 PM (UTC+4)
Edited by
Kate Bain
It’s looking likely that the state of California will move to ban the sale of Tesla vehicles.
The state’s DMV has brought a lawsuit against the manufacturer, claiming that it is misrepresenting the capabilities of its driving aids.
It’s being argued that this constitutes false advertising, so the DMV is looking to suspend Tesla’s ability to sell cars in the Golden State for 30 days.
Should this ban come into effect, it would deal a huge blow to the company’s sales.
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This is why California is looking to ban the sale of Tesla cars
Tesla is facing a ban on selling cars within the state of California, thanks to a lawsuit brought by the state’s DMV.
The manufacturer has been in a years long dispute with the DMV over their driving aids.
Said driving aids being its ‘Autopilot’ and ‘Full Self Driving’ modes, which are being criticized as inaccurately advertised.
This is because neither allows for fully autonomous driving, in which the driver does absolutely nothing.

This is why California’s DMV is accusing the American manufacturer of false advertising, and looking to suspend the company’s ability to sell cars within the state for 30 days.
California’s DMV has been investigating Tesla since 2021, Electrek reported.
Not only are the names of the driving aids giving them cause for concern, but statements from Tesla haven’t helped matters.
Of particular concern is a public statement in which the automaker said: ‘All you need to do is get in and tell your car where to go.’
Tesla has argued that the DMV was aware of the ‘Autopilot’ and ‘Full Self-Driving’ branding since the features were rolled out in 2014 and 2016.

In the company’s view, this amounts to ‘implicit approval’, up until the point the DMV began its investigation in 2021.
Small tweaks have been made to the product descriptions over the years.
The highest tier feature is labeled on Tesla’s website as ‘Full Self-Driving (Supervised)’.
It comes with an accompanying note – ‘currently enabled features require active driver supervision and do not make the vehicle autonomous’.
Should California put a 30-day suspension on the sale of Tesla cars, it would deal a major blow to the company.
The state accounts for nearly a third of its sales within the US, according to Reuters calculations.

The Autopilot and Full Self Driving features are constantly developing
The Autopilot and Full Self Driving features have been around for a decade or so, but have been generating more buzz in the last few years.
And it’s no wonder, given some of the situations that owners have put their FSD to the test in.

One driver tested out FSD in a jungle, which is pretty extraordinary.
And there’s no signs of the company easing off on the technology, with a FSD Robotaxi service being launched in several American cities, and Elon Musk declaring that unsupervised FSD was on the way.
The outcome of the dispute between Tesla and California’s DMV may scupper some of these plans however.
If California bans the sale of Tesla vehicles, it would likely cause a great deal of upset.
However, things have already been going sour in the state for a while.
Earlier this year, CBS News reported that there had been a 250 percent spike in Californians trading in their Teslas.
One such customer was YouTuber DennisCW, who parted ways with his Cybertruck and laid out his reasons in a video.
Supercar Blondie has contacted Tesla for comment.
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