The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for thirty days. This decision comes because the electric vehicle maker has stopped using the term “Autopilot” in its marketing within the state.
The ruling, issued late Tuesday, allows Tesla to continue selling its vehicles in California without any interruption. It officially settles a case that has been ongoing for nearly three years. California represents 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 driver assistance systems. The state contended these names created a false impression of the vehicles’ autonomous functions.
Tesla had previously modified its use of “Full Self-Driving,” changing it to “Full Self-Driving (Supervised)” to clarify that driver monitoring is required. However, the company continued using the “Autopilot” term, which led the DMV to refer the case to an administrative law judge.
In December, that judge agreed with the DMV’s request for a thirty-day suspension of Tesla’s licenses as a penalty. The DMV upheld the ruling but gave Tesla sixty days to comply with its demands.
The department stated that Tesla took corrective action by ceasing to use the misleading term “Autopilot” in its California marketing. Tesla had already modified its use of “Full Self-Driving” to emphasize the need for driver supervision. By taking these actions, Tesla avoided the thirty-day license suspension.
Tesla did not merely stop using the name in marketing. In January, the company discontinued the Autopilot system entirely in the United States and Canada. This move not only ensured compliance with the California DMV but was also seen as a strategy to boost adoption of its Full Self-Driving software, which requires an additional payment from the owner.
Full Self-Driving (Supervised), which until February 14 required an eight-thousand-dollar one-time fee, is now only available through a monthly subscription costing ninety-nine dollars. Tesla CEO Elon Musk has stated that this subscription fee is expected to increase as the capabilities of the system improve.