The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for 30 days because the electric car 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 to sell its electric cars in California without interruption and officially settles a case that has dragged on for nearly three years. California is Tesla’s largest US market.
In November 2023, the DMV filed allegations that Tesla violated state law by using misleading 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 misled 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 stuck to the Autopilot period, 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 approved the DMV’s request to suspend Tesla’s sales and manufacturing licenses in the state for 30 days as punishment for its actions. The DMV agreed with the decision but did not strike; 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 said in a statement posted on its website. “Tesla had previously changed its use of the term ‘Full Self-Driving’ to clarify that driver monitoring 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.”
However, Tesla didn’t just stop using the term Autopilot. In January, the company completely stopped using Autopilot in the US and Canada. The move not only helped it comply with the DMV, but was also seen as a way to increase adoption of FSD, which, unlike Autopilot, requires the owner to pay for the upgraded system.
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FSD Supervised, which until February 14 required a one-time fee of $8,000, is now only available through a $99 monthly subscription. That subscription fee is expected to increase as the system becomes more suitable, Tesla CEO Elon Musk has said.