The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for 30 days. This decision comes because the electric vehicle maker has stopped using the term “Autopilot” in the marketing of its vehicles within the state. The ruling, issued late Tuesday, allows Tesla to continue selling its vehicles in California without interruption and officially settles a case that has been ongoing for nearly three years. California is Tesla’s largest market in the United States.
In November 2023, the DMV filed accusations that Tesla violated state law through deceptive marketing. The regulator argued that the terms “Autopilot” and “Full Self-Driving” misled customers about the capabilities of the company’s advanced driver assistance systems. Tesla subsequently stopped using the phrase “Full Self-Driving Capability,” replacing it with “Full Self-Driving (Supervised)” to clarify that driver supervision is required. However, the company continued to use the “Autopilot” term, which led the DMV to refer the case to an administrative law judge.
In December, the administrative law judge agreed with the DMV’s request to suspend Tesla’s licenses in the state for 30 days as a penalty. The DMV upheld the ruling but gave Tesla 60 days to comply with its demands. The state regulator has now stated that Tesla took corrective action by stopping its use of the misleading term “Autopilot” in its California marketing. Tesla had previously modified its use of “Full Self-Driving” to emphasize the need for driver supervision. By taking these actions, Tesla avoids the 30-day suspension of its dealer and manufacturer licenses.
Tesla did not merely stop using the term in marketing. In January, the company discontinued the Autopilot system altogether in the U.S. and Canada. This move not only helped it comply with the DMV but was also seen as a strategy to boost adoption of its Full Self-Driving software, which, unlike Autopilot, requires owners to pay for the upgraded system.
Full Self-Driving (Supervised), which until February 14 required an $8,000 one-time purchase, is now only available through a monthly subscription costing $99. Tesla CEO Elon Musk has stated that this subscription fee is expected to increase as the capabilities of the system improve.