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 because the EV maker has stopped using the term “Autopilot” in the marketing of its vehicles in the state.

The decision, issued late Tuesday, means Tesla can continue selling its EVs in California without interruption and officially settles a case that has been dragging on for nearly three years. California is Tesla’s biggest U.S. market.

In November 2023, the DMV filed accusations that Tesla violated state law by using deceptive marketing of Autopilot, its basic advanced driver assistance system, as well as its more capable Full Self-Driving driver assistance software. The state regulator argued that the terms mislead customers and distorted the capabilities of the advanced driver assistance systems.

Tesla stopped using the term “Full Self-Driving Capability,” and instead used Full Self-Driving (Supervised) to more accurately describe the system and clarify that drivers were still required to monitor it. But Tesla held on to the Autopilot term, prompting the DMV to refer the case to an administrative law judge at the California Office of Administrative Hearings.

In December, the administrative law judge agreed with the DMV’s request to suspend Tesla’s sales and manufacturing licenses in the state for 30 days as a penalty for its actions. The DMV agreed with the ruling, but didn’t pounce; instead, the state regulator gave Tesla 60 days to comply.

“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 stated in a release 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 just stop using the term Autopilot, though. In January, the company discontinued Autopilot in the U.S. and Canada altogether. The move not only helped it comply with the DMV but was also viewed as a way to boost adoption of FSD, which unlike Autopilot, requires the owner to pay for the upgraded system.

FSD Supervised, which until February 14 required an $8,000 one-time fee, is now only available through a monthly subscription of $99. That subscription fee is expected to increase as the system becomes more capable, Tesla CEO Elon Musk has said.