Tesla (NASDAQ: TSLA) can keep selling vehicles in California for now, but the state’s DMV has formally adopted an order that suspends Tesla’s dealer license for 30 days, with enforcement stayed for 90 days while Tesla attempts to cure the marketing issue.
The same order also addresses manufacturing, suspending the automaker for 30 days, but the suspension is permanently stayed in the text of the adopted order.
The order frames the violation around branding and implied capability: continuing to use the “Autopilot” name to describe advanced driver assistance system features that do not cause Tesla vehicles to operate at SAE Level 3, Level 4, or Level 5 violates multiple provisions.
Within 60 days from the order’s effective date, Tesla can file either a statement that it has ceased using “Autopilot” for non-Level 3–5 ADAS, including steps taken and the date of cessation, or a statement that it has implemented changes so the “Autopilot”-described ADAS now does cause operation at SAE Level 3–5, with enough detail for DMV evaluation.
If Tesla submits one of those statements, the DMV commits to evaluate and respond within 15 days, and if DMV agrees the condition is met, the stay of the dealer-license suspension becomes permanent.
Reuters reports DMV Director Steve Gordon said the agency is giving Tesla “one more chance to be able to remedy the situation,” and that Tesla can avoid suspension by submitting a statement that it has either stopped using “Autopilot” or can confirm cars can operate without active human monitoring. 
Tesla’s public posture, per Reuters, is that the order is “consumer protection” focused and that “sales in California will continue uninterrupted.”
Information for this story was found via Reuters, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
