Should investors sell immediately? Or is it worth buying Tesla? In its public response, Tesla has sought to downplay the decision’s significance. A social media post from the company characterized the matter as a “consumer protection order regarding the use of the term ‘Autopilot’ in a case where not a single customer has complained.” Tesla simultaneously emphasized that “sales in California will continue uninterrupted,” signaling its intent to meet the 60-day deadline for advertising adjustments. Setting a Precedent for the Industry The case, which originated from an investigation launched in 2021, centered on a fundamental question: do Tesla’s chosen feature names mislead consumers by suggesting driverless capability for what are legally and technically Level 2 driver-assistance systems? California’s final ruling establishes a notable precedent: Legal Framework: The DMV has officially confirmed that Tesla’s past marketing can be classified as misleading. Industry Warning: Other developers of driver-assistance and autonomous systems now have a clear benchmark for how strictly California regulators will interpret promotional claims. Existing Adjustments: Tesla had already begun adopting more cautious language, now frequently using “Full Self-Driving (Supervised)” in many channels. The DMV’s order makes clear, however, that piecemeal phrasing changes are insufficient; all marketing materials must be unambiguous and consistent. This decision closes a multi-year dispute but shifts the focus squarely to Tesla’s practical implementation of the stipulated changes. The Path Forward: A 60-Day Countdown For investors, the immediate concern is the potential economic impact of renaming or more clearly labeling Tesla’s software packages. The possible outcomes generally fall into two categories: Favorable Outcome: Tesla executes precise modifications to its text and product descriptions while preserving the core brand equity of FSD and Autopilot. The 60-day period passes without a dealer license suspension, California sales proceed undisturbed, and regulatory pressure subsides without materially affecting demand or software margins. Adverse Outcome: A more pronounced demystification of the feature names could dilute the premium perception of these high-margin software packages. A subsequent decline in consumer uptake would directly impact profitability, especially if the DMV’s decision inspires similar actions in other U.S. states or international markets. From a technical analysis perspective, the stock’s recent recovery has positioned it well above its medium-term averages. However, an RSI reading of 73.7 indicates an overbought condition. The crucial factor for the share price trajectory will be whether Tesla demonstrably satisfies all DMV requirements by mid-February 2026, thereby eliminating the risk of a sales halt in its most important U.S. state. Ad