SAN FRANCISCO — California regulators are threatening to suspend Tesla’s license to sell its electric cars in the state early next year unless the automaker tones down its marketing tactics for its self-driving features after a judge concluded the Elon Musk-led company has been misleading consumers about the technology’s capabilities.

The potential 30-day blackout of Tesla’s California sales is the primary punishment being recommended to the state’s Department of Motor Vehicles in a decision released late Tuesday. The ruling by Administrative Law Judge Juliet Cox determined that Tesla had for years engaged in deceptive marketing practices by using the terms “Autopilot” and “Full Self-Driving” to promote the autonomous technology available in many of its cars.

After presiding over five days of hearings held in Oakland, California in July, Cox also recommended suspending Tesla’s license to manufacture cars at its plant in Fremont, California. But California regulators aren’t going to impose that part of the judge’s proposed penalty.

Tesla will have a 90-day window to make changes that more clearly convey the limits of its self-driving technology to avoid having its California sales license suspended. After California regulators filed its action against Tesla in 2023, the Austin, Texas, company already made one significant change by putting in wording that made it clear its Full Self-Driving package still required supervision by a human driver while it’s deployed.

“Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve,” said Steve Gordon, the director of the California Department of Motor Vehicles.

Tesla didn’t immediately respond to a request for comment Wednesday.

The automaker has already been plagued by a global downturn in demand that began during a backlash to Musk’s high-profile role overseeing cuts in the U.S. government budget overseeing the Department of Government that President Donald Trump created in his administration. Increased competition and an older lineup of vehicles also weighed on Tesla sales, although the company did revamp its Model Y, the world’s bestselling vehicle, and unveil less-expensive versions of the Model Y and Model X.

Although Musk left Washington after a falling out with Trump, the fallout has continued to weigh on Tesla’s auto sales, which had decreased by 9% from 2024 through the first nine months of this year.

Despite the slump and the threatened sales suspension in California, Tesla’s stock price touched an all-time high $495.28 during Wednesday’s early trading before backtracking later to fall below $470. Despite that reversal, Tesla’s shares are still worth slightly more than they were before Musk’s ill-fated stint in the Trump administration — a “somewhat successful” assignment he recently said he wouldn’t take on again.

The performance of Tesla’s stock against the backdrop of eroding auto sales reflects the increasing emphasis that investors are placing on Musk’s efforts to develop artificial intelligence technology to implant into humanoid robots and a fleet of self-driving Teslas that will operate as robotaxis across the U.S.

Musk has been promising Tesla’s self-driving technology would fulfill his robotaxi vision for years without delivering on the promise, but the company finally began testing the concept in Austin earlier this year, albeit with a human supervisor in the car to take over if something went awry. Just a few days ago, Musk disclosed Tesla had started tests of its robotaxis without a safety monitor in the vehicle.

California regulators are far from the first critic to accuse Tesla of exaggerating the capabilities of its self-driving technology in a potentially dangerous manner. The company has steadfastly insisted that information contained in its vehicle’s owner’s manual on its website have made it clear that its self-driving technology still requires human supervision, even while releasing a 2020 video depicting one of its cars purportedly driving on its own. The video, cited as evidence against Tesla in the decision recommending a suspension of the company’s California sales license, remained on its website for nearly four years.

Tesla has been targeted in a variety of lawsuits alleging its mischaracterizations about self-driving technology have lulled humans into a false of security that have resulted in lethal accidents. The company has settled or prevailed in several cases, but earlier this year a Miami jury held Tesla partly responsible for a lethal crash in Florida that occurred while Autopilot was deployed and ordered the automaker to pay more than $240 million in damages.

LOS ANGELES — A former California doctor was sentenced to 8 months of home detention and 3 years of supervised release Tuesday after pleading guilty to ketamine distribution in connection with the fatal overdose of “Friends” star Matthew Perry.

Mark Chavez pleaded guilty in 2024 to one count of conspiring to distribute ketamine to Perry, who died at 54. Chavez appeared Tuesday before U.S. District Judge Sherilyn Peace Garnett in Los Angeles. He faced up to 10 years in prison.

He will also be required to complete 300 hours of community service and pay a $100 special assessment to the U.S. government.

“My heart goes out to the Perry family,” Chavez said outside of court after his sentencing.

Zach Brooks, a member of Chavez’s legal team, said Tuesday: “what occurred in this case was a profound departure from the life he had lived up to that point. The consequences have been severe and permanent. Mr. Chavez has lost his career, his livelihood, and professional identity that he has worked for decades to develop.”

“Looking forward, Mr. Chavez understands that accountability does not end with this sentence. He’s committed to using the rest of his life to contribute positively, to support others and to ensure that nothing like this ever happens again,” Brooks said. “While he cannot undo what occurred, he can choose how he lives his life from this moment.”

Chavez was one of five people charged in connection with Perry’s death. The TV star died of an accidental overdose and was found dead in a hot tub at his Los Angeles home in October 2023.

Chavez’s lawyer, Matthew Binninger, has previously said his client was “incredibly remorseful” and “accepting responsibility” for his patient’s overdose.

Chavez was a licensed physician in San Diego who formerly operated a ketamine clinic. Prosecutors said he sold ketamine to another doctor, Salvador Plasencia, who then distributed it to Perry.

“I wonder how much this moron will pay,” Plasencia said in a text exchange to Chavez, according to the investigators. “Lets find out.”

Earlier this month, Plasencia was sentenced to two and a half years in federal prison for his involvement in the case.

Chavez wrote “a fraudulent prescription in a patient’s name without her knowledge or consent, and lied to wholesale ketamine distributors to buy additional vials of liquid ketamine that Chavez intended to sell to Plasencia for distribution to Perry,” the indictment in the case said.

In the month before his death, the doctors provided Perry with about 20 vials of ketamine and received some $55,000 in cash, according to federal prosecutors.

Perry was undergoing ketamine infusion therapy to treat depression and anxiety, according to a coroner’s report. However, the levels of ketamine in his body at the time of his death were dangerously high, roughly the same amount used for general anesthesia during surgery. The coroner ruled his death an accident.

Before his death, Perry was open about his lengthy struggles with opioid addiction and alcohol use disorder, which he chronicled in his 2022 memoir, “Friends, Lovers and the Big Terrible Thing.”

Katie Wall reported from Los Angeles and Daniella Silva reported from New York.