Tesla engaged in fraudulent sales of Autopilot and Full Self-Driving, judges ruled

Administrative law judge he has ruled that Tesla engaged in deceptive marketing that gave customers the wrong impression of the capabilities of its driver assistance program Autopilot and Full Self-Driving, the most important development in years introduced by the California Department of Motor Vehicles.

The judge agreed request of the state DMV suspending Tesla’s sales for 30 days as punishment for its actions, but the DMV dropped the order and is giving Tesla 90 days to change or remove any deceptive language before applying the suspension, according to to more supplies. A judge also recommended suspending Tesla’s manufacturing license for 30 days, but the DMV also rejected that order, according to Bloomberg News.

It’s not immediately clear what the CA DMV thinks Tesla will be following the ruling. If Tesla complies, the suspension will be lifted. The DMV did not immediately respond to a request for comment. Tesla no longer has a public relations department.

Tesla faced several investigations from California Attorney Generaland Department of Justiceand the Securities and Exchange Commission in similar rulings that its marketing around independent practices was misleading. The company has also faced (and now settled) several lawsuits over accidents involving its Autopilot technology.

The CA DMV case has been going through the Office of Administrative Hearings for years. The agency criticized Tesla for leading customers to believe that its advanced self-driving cars could be autonomous. This has led to over-reliance on the machines, the DMV says, which has led to more accidents and more deaths. Tesla denied the claims saying that its product was protected speech.

A sales shutdown in California, even temporarily, could have a major impact on Tesla’s business as it remains the company’s largest market in the United States. A production stoppage would also hurt Tesla’s business. While the company built a large factory in Austin, Texas (and moved its headquarters to the same location), it still relies on its Fremont, California plant to produce hundreds of thousands of vehicles, including all Model 3 sedans built in North America.

The judge’s decision comes at a time when Tesla is moving forward with its Robotaxi test in Austin. At the end of the week, the company fired security guards from his small ships in the city. For the past six months, it has been offering rides to customers in the city, but with a safety light on either the driver’s or passenger’s seat. These cars have a different type of Tesla driver software than the automaker’s customers have in their cars, CEO Elon Musk said.