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California considers temporary Tesla sales ban over FSD safety concerns

Regulators demand proof of reliability as debate over autonomous driving intensifies

2 Min.

19.12.2025

In the U.S. state of California, electric-vehicle manufacturer Tesla is facing a possible one-month sales suspension after state authorities raised concerns about cars equipped with its »Full Self-Driving« (FSD) software. The California Department of Motor Vehicles (DMV) has asked Tesla to halt the sale or leasing of new vehicles with this feature until a more thorough review is completed. The move follows repeated reports of accidents and safety issues linked to the driver-assistance system.

Tesla rejects the allegations and emphasizes that the FSD software is not marketed as a fully autonomous system and still requires the driver’s constant attention and control. Nevertheless, the company is under political and regulatory pressure: California is demanding more extensive proof of safety and reliability before the technology can be widely promoted.

Market observers see this development as more than a regional dispute. California is the largest single market for electric vehicles in the United States, and a sales suspension could have a measurable short-term impact on Tesla’s sales and share price. In addition, the debate over autonomous driving functions and their legal classification is intensifying at the federal level, as other states consider similar reviews and regulatory approaches.

Politically, the case touches on fundamental questions of technological innovation, consumer safety and regulation: on the one hand, new mobility solutions are to be encouraged; on the other hand, they must not come at the expense of public safety. The outcome is therefore likely to be significant not only for Tesla, but for the entire industry.

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