The California Department of Motor Vehicles has decided not to suspend Tesla’s sales and manufacturing licenses for 30 days, following the company’s recent cessation of using the term “Autopilot” in its vehicle marketing within the state. This ruling, issued late Tuesday, allows Tesla to continue its operations without any interruptions in California, which is the company’s largest market in the United States.
The case, which has lingered for nearly three years, began in November 2023 when the DMV accused Tesla of violating state laws through deceptive marketing practices related to “Autopilot,” its base advanced driver assistance system (ADAS), and its more advanced Full Self-Driving (FSD) software. The DMV claimed that the terminology used by Tesla misled customers about the actual capabilities of these systems.
In response to the accusations, Tesla took steps to clarify its marketing language. The company changed the term “Full Self-Driving Capability” to “Full Self-Driving (Supervised),” indicating that driver oversight remains mandatory. However, Tesla continued to use “Autopilot,” prompting the DMV to escalate the issue to an administrative law judge at the California Office of Administrative Hearings.
In December, the judge sided with the DMV, recommending a 30-day suspension of Tesla’s licenses as a penalty for its misleading practices. Although the DMV supported this decision, it opted to allow Tesla 60 days for compliance rather than acting immediately.
Following this ruling, Tesla made significant changes to its marketing approach by halting the use of the term “Autopilot” altogether, which the DMV acknowledged in an official statement. This corrective measure meant Tesla could avoid the license suspension.
In a broader context, Tesla’s decision to end the use of the Autopilot terminology was strategic; it aligns with the company’s January 2024 discontinuation of the Autopilot system in the U.S. and Canada. This strategic pivot not only helped adhere to regulatory demands but was also seen as a push to enhance adoption rates for FSD, an upgrade that requires an additional fee.
The Full Self-Driving (Supervised), which previously required a one-time fee of $8,000, is now available as a monthly subscription costing $99. Tesla CEO Elon Musk has indicated that this subscription price is likely to rise as the capabilities of the system improve over time.
This development reflects Tesla’s ongoing adjustments to its marketing strategies amid evolving regulatory landscapes, emphasizing clarity and compliance in how advanced driving technologies are presented to consumers.
