Tesla dodges 30-day suspension in California after removing ‘Autopilot’

The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for 30 days after the automaker stops using the word “Autopilot” in the marketing of its vehicles within the state.

The late-Tuesday decision allows Tesla to keep selling its EVs in California without disruption and formally closes a matter that has stretched on for nearly three years. California remains Tesla’s largest market in the U.S.

In November 2023, the DMV filed accusations alleging Tesla broke state law by marketing Autopilot — the company’s standard advanced driver-assistance system — and its more advanced Full Self-Driving driver-assistance software in ways the regulator said were deceptive. The state argued that the names could mislead buyers and overstate what the systems can do.

Tesla previously stopped using the phrase “Full Self-Driving Capability” and shifted to “Full Self-Driving (Supervised),” a change aimed at more precisely describing the feature and reinforcing that the driver must continue to monitor the vehicle. Tesla, however, continued using the Autopilot label, prompting the DMV to refer the dispute to an administrative law judge at the California Office of Administrative Hearings.

In December, the administrative law judge sided with the DMV’s request and supported a 30-day suspension of Tesla’s dealer and manufacturer licenses in California as a penalty. The DMV accepted that ruling but did not move immediately; instead, the agency gave Tesla 60 days to meet compliance requirements.

“Since then, Tesla took corrective action and has stopped using the misleading term ‘Autopilot’ in the marketing of its electric vehicles in California,” the DMV said in a statement posted on its website. Tesla had previously modified its use of the term ‘Full Self-Driving’ to clarify that driver supervision is required. By taking this prescribed action, Tesla will avoid having its dealer and manufacturer licenses suspended in the state for 30 days by the DMV.”

Tesla didn’t only drop the Autopilot branding. In January, the company also discontinued Autopilot across the U.S. and Canada. The change not only supported compliance with California’s DMV but was also widely viewed as an effort to encourage more owners to adopt FSD, which, unlike Autopilot, requires customers to pay for the upgraded software.

FSD Supervised, which up until February 14 carried an $8,000 one-time purchase price, is now offered only via a monthly subscription costing $99. That subscription fee is expected to rise as the system improves and gains more capability, Tesla CEO Elon Musk has said.