Steve Gordon, director of the California Motor Vehicle Administration, said that California is likely to punish Tesla by suspending sales for 30 days because it is suspected of misleading consumers by promoting its driver-assistance function. Gordon said at a press conference on Tuesday that it has been decided to adopt the penalty proposed by the administrative judge, but the suspension order will not take effect until 90 days later, in order to give Tesla time to make compliance adjustments. As of press time, Tesla shares fell 0.8% after the market. Tesla has yet to respond to requests for comment. “Our real requirement is for Tesla to be responsible — as they have done in other markets — to properly label these vehicles.” Gordon said. The penalty for suspending sales would be a major blow to Tesla. California is not only Tesla's largest sales market in the US, but also one of the company's main factory locations. Even a brief interruption in sales can cause high costs.

Steve Gordon, director of the California Motor Vehicle Administration, said that California is likely to punish Tesla by suspending sales for 30 days because it is suspected of misleading consumers by promoting its driver-assistance function. Gordon said at a press conference on Tuesday that it has been decided to adopt the penalty proposed by the administrative judge, but the suspension order will not take effect until 90 days later, in order to give Tesla time to make compliance adjustments. As of press time, Tesla shares fell 0.8% after the market. Tesla has yet to respond to requests for comment. “Our real requirement is for Tesla to be responsible — as they have done in other markets — to properly label these vehicles.” Gordon said. The penalty for suspending sales would be a major blow to Tesla. California is not only Tesla's largest sales market in the US, but also one of the company's main factory locations. Even a brief interruption in sales can cause high costs.