Tesla Faces California Sales Halt Unless It Alters Marketing (2)

Tesla Inc.’s sales in California are poised to be suspended for 30 days if it doesn’t change its marketing practices that allegedly mislead consumers about its driver-assistance technology, the state’s motor vehicles department said.

The agency said Tuesday the suspension won’t take effect for 90 days to give the company time to appeal or come into compliance. The California Department of Motor Vehicles accused the company of exaggerating the capabilities of its “Autopilot” and “Full Self-Driving” software and had asked an administrative judge to weigh whether a suspension is warranted.

Tesla shares fell as much as 2.2% on the ...