Elon Musk’s company has been convicted of “deceptive marketing.”

A judge in California, USA, has ruled that Tesla engaged in deceptive marketing practices related to its Autopilot self-driving system.

A California administrative law judge has ruled that Tesla’s marketing of its “Autopilot” and “Full Self-Driving” systems, currently headed by Elon Musk, is misleading and that the company should be suspended from its license to sell and manufacture cars in the state for 30 days. This information was shared by the California Department of Motor Vehicles (DMV) on December 16th.

The California Department of Motor Vehicles (DMV) has officially accused Tesla of false advertising regarding its driver-assistance features since 2022. This information was announced by California DMV Director Steve Gordon at a press conference on Tuesday.

According to Gordon, the regulatory agency will give Tesla 90 days to clarify or remove any language deemed misleading or confusing in its marketing materials for the Autopilot and Full Self-Driving (FSD) systems. Failure to meet this requirement within the deadline will result in the DMV suspending Tesla’s vehicle sales license in California for 30 days.

However, Gordon also stated that the DMV would temporarily postpone suspending Tesla’s manufacturing license to avoid disrupting operations at the company’s California plant.

Previously, in 2022, the DMV stated that marketing campaigns under the names “Autopilot” and “Full Self-Driving” had led consumers to believe that Tesla vehicles were capable of fully autonomous driving. In reality, these systems still required the driver to remain focused, keep their hands on the steering wheel, and be ready to intervene with steering or braking at any time.

Since then, Tesla has adjusted its terminology, renaming its advanced driver assistance package to Full Self-Driving (Supervised), to emphasize the mandatory role of driver supervision.

Tesla has not yet issued an official response to media requests for comment on Tuesday.

Despite regulatory action, Tesla shares closed at a record high on the same day, largely due to optimistic sentiment among Wall Street investors surrounding the company’s self-driving taxi service plans.