Tesla Faces Calif. Sales Halt Over Marketing: California Brief

California is threatening to suspend Tesla sales in its biggest US market for 30 days if it doesn’t change its advertising practices.

The suspension of sales in California is a penalty for allegedly misleading consumers about its driver-assistance technology, the state’s motor vehicles department said Tuesday. The company has 90 days to appeal or come into compliance before it takes effect.

“We’re really asking Tesla to do their job, as they’ve done in other markets, to properly brand these vehicles,” said Steve Gordon, director of the California Department of Motor Vehicles.

This would be a costly blow with ...