California Regulators Decide Not to Suspend Tesla Sales

Got story updates? Submit your updates here. ›

The California Department of Motor Vehicles has decided not to suspend Tesla's license to sell cars in the state for 30 days, as had been recommended by an administrative law judge. The judge had found that Tesla had misled drivers about the abilities of its 'Autopilot' and 'Full Self-Driving' features, but the regulators determined that Tesla has now made sufficient changes, including using the term 'supervised' instead of 'Autopilot' in its marketing.

Why it matters

This decision allows Tesla to continue selling vehicles in California, one of its largest markets. The case highlights ongoing concerns about how autonomous vehicle technology is marketed and the potential for misleading claims that could put drivers and others at risk.

The details

An administrative law judge had previously recommended that California regulators suspend Tesla's license to sell cars in the state for 30 days, after finding that the company had misled drivers about the capabilities of its 'Autopilot' and 'Full Self-Driving' features. However, the regulators decided that Tesla has now made sufficient changes, including using the term 'supervised' instead of 'Autopilot' in its marketing, and therefore will not suspend the company's sales license.

• On Tuesday, February 18, 2026, California regulators announced their decision.