Tesla evades 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 electric car maker has stopped using the term “Autopilot” in marketing its vehicles in the state.

The decision, issued late Tuesday, means Tesla can continue selling its electric cars in California without interruption and officially settles a case that has been going on for nearly three years. California is Tesla’s largest market in the United States.

In November 2023, the DMV filed charges that Tesla violated state law by using deceptive marketing of Autopilot, its advanced basic driver assistance system, as well as its more capable self-driving driver assistance software. The state regulator argued that the terminology misleads customers and distorts the capabilities of advanced driver assistance systems.

Tesla stopped using the term “full self-driving capability,” and instead used full (supervised) self-driving to more accurately describe the system and make clear that drivers still have to monitor it. But Tesla kept the Autopilot term, prompting the DMV to refer the case to an administrative law judge in the California Office of Administrative Hearings.

In December, an administrative law judge granted 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 ruling but did not overrule. Instead, the state regulator gave Tesla 60 days to comply.

“Tesla has since taken corrective action and stopped using the misleading term ‘Autopilot’ in marketing its electric vehicles in California,” the DMV said in a statement posted on its website. “Tesla previously modified its use of the term ‘full self-driving’ to clarify that driver supervision is required. By taking this described action, Tesla will avoid a 30-day suspension of its dealer and manufacturer licenses in the state by the DMV.”

However, Tesla has not stopped using the term Autopilot. In January, the company completely discontinued use of Autopilot in the United States and Canada. The move not only helped the company comply with the DMV, but was also seen as a way to promote adoption of FSD, which, unlike Autopilot, requires the owner to pay for the upgraded system.

FSD Supervised, which through February 14 requires a one-time fee of $8,000, is now only available through a $99 monthly subscription. Tesla CEO Elon Musk said subscription fees are expected to increase as system capacity increases.