California DMV gives Tesla more time after judge calls for suspending sales

By Christine Mui, Alex Nieves | 12/17/2025 12:20 PM EST

An administrative judge recommended that California officials temporarily revoke Tesla’s license to manufacture and sell cars in the state.

SACRAMENTO, California — California’s Department of Motor Vehicles has spared Tesla from a monthlong pause on its ability to sell and make cars in the state in hopes that the company will fix misleading claims about its Autopilot technology.

What happened: An administrative judge handed down the punishments last month in response to a department lawsuit against Tesla, claiming it had misled consumers about the self-driving capabilities of its vehicles. But the ruling was not made public until Tuesday.

DMV Director Steve Gordon told reporters that he’s decided to permanently stay the judge’s recommendation to suspend Tesla’s manufacturing license and to give the automaker another 90 days before coming down on its sale of cars.

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“We want to give them a chance — you could argue one more chance — to be able to remedy the situation,” Gordon said. “They’re very important to the state. We want to be fair to them.”

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