Tesla (TSLA) faces a potential 30-day suspension of vehicle sales in California as a penalty for allegedly misleading customers about its driver-assistance technology, Bloomberg reported Tuesday.
The action set to take effect after 90 days to give the company time to comply with California Department of Motor Vehicles requirements, citing comments from the agency’s head.
The proposed suspension follows a recommendation from an administrative law judge who found that Tesla engaged in deceptive marketing related to its Autopilot and Full Self-Driving features.
Shares of the electric vehicle maker notched a record high on Tuesday amid some bullish commentary over its robotaxis and a major electric vehicle-related writedown by a rival.