California Regulators Allow Tesla Sales to Continue

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California regulators have decided not to suspend Tesla's license to sell cars in the state for 30 days, as previously recommended by an administrative law judge. The regulators found that Tesla had stopped misleading drivers about the safety and self-driving capabilities of its vehicles, including by no longer using the terms "Autopilot" and "Full Self-Driving" in its marketing in the state.

Why it matters

This decision allows Tesla to continue selling its electric vehicles in California, one of the company's largest markets. The state had taken issue with Tesla's marketing claims around its driver assistance features, which regulators found to be misleading. The resolution of this dispute avoids potential disruption to Tesla's sales in the state.

The details

An administrative law judge had previously recommended that California regulators suspend Tesla's license to sell cars for 30 days, after finding the company had misled drivers about the capabilities of its Autopilot and Full Self-Driving features. However, the regulators gave Tesla a 90-day window to make changes, and they have now determined the company has sufficiently addressed the deceptive marketing by no longer using those terms in its California promotions.

• The administrative law judge's recommendation came last year.
• Tesla was given a 90-day window to make changes.
• California regulators announced their decision on Tuesday, February 18, 2026.