- Tesla can keep selling and producing cars in California after it agreed to drop its use of “Autopilot” in marketing.
- California had argued the Autopilot branding implied drivers could rely exclusively on the tech.
- California is critical to Tesla’s car sales. It’s also home to two of the carmaker’s manufacturing hubs.
Tesla has avoided a 30-day suspension of its dealer and manufacturer licenses in California. The cost: “Autopilot.”
The reprieve comes two months after the state ordered the automaker to stop using the term in its vehicle marketing.
On Tuesday, the California Department of Motor Vehicles said Tesla had taken the required corrective action following a December administrative ruling over the marketing of its driver-assistance features.
In November 2023, the DMV accused Tesla of misleading consumers by advertising its systems — branded as “Autopilot” and “Full Self-Driving” — in ways that implied the vehicles were capable of autonomous driving.
The decision effectively ends a three-year legal fight between Tesla and California regulators. The state is critical for the EV maker — it’s the car company’s largest US sales market and home to two manufacturing hubs.
Autopilot was the name of Tesla’s Level-2 driver-assistance feature, including lane tracing and cruise control adjustment. The company’s then-called Full-Self Driving included Level-3 driver assistance, in which the car would turn its wheels and apply the brakes, but required human eyes on the road and readiness to take control at a moment’s notice.
An administrative law judge in November 2025 concluded that Tesla’s use of the term “Autopilot” violated California law and recommended suspending the company’s licenses for 30 days if the automaker continued using the branding in its marketing materials.
The DMV adopted the judge’s findings in December but permanently stayed the suspension and gave Tesla 60 days to comply.
Tesla had already modified its “Full Self-Driving” branding to “Full Self-Driving (Supervised)” in September 2024.
The company also clarified that the system worked “with minimal driver intervention.”
🤔 @Tesla is no longer selling “FSD” as a package. They are only selling “FSD (Supervised)”. And there is no longer the promise that car will completely drive itself: only that car will drive “with minimal driver intervention”
I don’t think we are getting anything more than… pic.twitter.com/w88ptYDZ2W
— mooroo 🐝 (@mooroobee) September 6, 2024
In January, Tesla discontinued its Autopilot packages for new vehicles in the US and Canada and eliminated the $8,000 upfront purchase option for Full Self-Driving (Supervised).
The move leaves FSD (Supervised) available only as a $99-per-month subscription, further tying Tesla’s self-driving ambitions to recurring software revenue.
Boosting self-driving subscriptions is an integral part of CEO Elon Musk’s potential trillion-dollar pay package.
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