Elon Musk is famous for making big, unfulfilled promises about self-driving. Now, his EV company is in hot water in California.

Gordon said the DMV would give Tesla a 90-day grace period to change its marketing before the state reconsiders a monthlong sales ban and won’t pursue a manufacturing pause at all. “We want to give them a chance — you could argue one more chance — to be able to remedy the situation,” he said.

U.S. sales have fallen further from their 2022 peak, and Elon Musk has already told investors to brace for a “few rough quarters.”

Of course, the patent application doesn't specifically mention Starlink, nor has Tesla described any plans to integrate its EVs with Starlink. And companies file patents all the time for products or innovations that never make it to the factory floor. But it's an interesting look into the potential future of connected cars.

The DMV said Tesla’s use of terms like “Autopilot” and “Full Self-Driving” to describe its advanced driver assist systems “is misleading and violates state law.” The agency ordered a 30-day suspension of Tesla’s license to sell cars in the state if Tesla does not fix marketing concerns surrounding the term “Autopilot” within a 60-day window.

There’s been no dearth of sell signals for Tesla Inc. It’s facing a potential sales halt in California, an electric vehicle slowdown across the US and is losing market share in China and Europe.

Shares saw their first record close since December 2024, helping support the continued reign of the “Magnificent Seven.”