California's Tesla ban could come at any moment as week-long hearing draws to a close
Published on Jul 28, 2025 at 3:26 PM (UTC+4)
by Keelin McNamara
Last updated on Jul 28, 2025 at 9:19 PM (UTC+4)
Edited by
Emma Matthews
California’s Tesla ban could be about to hit at any second.
The state’s DMV sued the brand, claiming its Full Self-Driving (FSD) technology is misleading.
California’s Tesla ban would see the company banned from selling or manufacturing cars in the state for at least 30 days.
And now, the ban could be coming at any moment.
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DMV driving force behind California’s Tesla ban
The heart of California’s Tesla ban lies at the very core of the brand’s FSD technology.
California’s Department of Motor Vehicles (DMV) has claimed in court that the maker has misled its customers and consumers.
And now, the department wants to ban it from manufacturing or selling cars in the state for 30 days.
The DMV argues that Tesla has been intentionally misleading regarding its “Full Self-Driving” terminology.
It makes the case that the American EV giant misled customers into thinking the cars were more autonomous than they actually are.
During the course of the court hearing, DMV lawyers made the case for how contradictory Tesla’s language is.
They argued that using terms like ‘autopilot’ and ‘Full Self-Driving‘ shouldn’t be accompanied by fine print explaining that drivers are required to intervene.
Court was adjourned on Friday following the week-long hearing, with no verdict handed down.
The brand, however, could be in real trouble if California’s Tesla ban does get passed.
Any ban would see the firm come in for a hefty punishment.
In addition to the 30-day ban on production and sales, the maker would be forced to provide financial compensation to customers.
Given the popularity of the EVs in California, said compensation could quickly run up a massive bill.
California ban could not come at a worse time for the brand
California’s potential ban could not have come at a worse time.
Last week, the auto maker held its quarterly earnings call – and the news was not good.
America’s premier EV marque has reported significantly lower Q2 earnings compared to last year.
And it has been completely overtaken in Europe and the UK by Chinese rival BYD.
The brand has also suffered enormous sales blows, which have been linked to the brand CEO, Elon Musk.
Controversy surrounding the CEO has seen the automaker’s reputation – and sales – nosedive in the first half of 2025.
The brand will be hoping beyond hope that California’s Tesla ban can be avoided.
Otherwise, the brand is about to suffer even greater damage to its reputation – and sales.
Keelin McNamara is a content writer at Supercar Blondie from Ireland, covering cars, technology, and lifestyle. Despite being a Law graduate, he discovered his passion for journalism during the COVID-19 pandemic, and has worked in the industry ever since. Outside of work, he is an avid MotoGP fan, and is a self-confessed addict of the sport.
