Tesla Sidesteps California Suspension by Halting ‘Autopilot’ Marketing

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Tesla has successfully avoided a 30-day suspension of its dealer and manufacturer licenses in California. This comes after the company complied with a state order to cease using the term “autopilot” in its marketing materials, as confirmed by state regulators on Tuesday.

The California Department of Motor Vehicles (DMV) had previously determined in December 2025 that Tesla misled consumers by marketing its electric vehicles with terms like “autopilot” and “full self-driving.” In a statement, the DMV noted that Tesla took “corrective action” by stopping the use of “autopilot” and clarifying that driver supervision is necessary for “full self-driving.”

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Tesla avoided a 30-day suspension of its California sales licenses after regulators said the company complied with an order to stop using the term “autopilot” in its marketing. (Yichuan Cao/NurPhoto / Getty Images)

“The DMV is committed to safety throughout all California’s roadways and communities,” stated California DMV Director Steve Gordon. “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.”

Since 2021, Tesla’s marketing materials for its Advanced Driver Assistance System (ADAS) included terms like “autopilot” and “full self-driving capability,” claiming that the system could conduct trips without any action from the driver. However, the DMV clarified that these vehicles were not capable of operating as autonomous vehicles at that time or currently.

The DMV filed accusations against Tesla’s licenses in November 2023, prompting the automaker to discontinue the term “full self-driving capability” after acknowledging that driver supervision was essential.

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California regulators said Tesla took corrective action in its marketing of driver-assistance features, avoiding a temporary suspension of its sales licenses. (Eric Thayer/Bloomberg via Getty Images / Getty Images)

In 2022, the California Office of Administrative Hearings conducted a hearing, leading to a proposed decision in November that found the term “autopilot” to be in violation of state law. The DMV had initially given Tesla 60 days to rectify the situation. By complying, Tesla successfully avoided a temporary suspension in California, which is its largest U.S. market.

According to Tesla’s website, the “autopilot” feature enables vehicles to match traffic speed and assists with steering within marked lanes.

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Tesla, led by Elon Musk, complied with a state order to stop using the term “autopilot” in California advertising, regulators said. (Fabrice COFFRINI/AFP via Getty Images / Getty Images)

The “full self-driving (supervision)” feature is designed to alert drivers to stop signs and traffic lights, allowing the vehicle to slow down as it approaches signals, all while requiring driver supervision.