Tesla Escapes California Sales Suspension After Dropping 'Autopilot' from Marketing

The word "Autopilot" is synonymous with Tesla. Whenever we hear this, we always know that Tesla electric vehicles can operate without human intervention.

The EV maker has successfully sidestepped a 30-day suspension of its sales and manufacturing licenses in California after removing the term "Autopilot" from its vehicle marketing. This decision allows the company to continue selling its cars uninterrupted in its largest U.S. market, ending a nearly three-year regulatory dispute.

Background on the DMV Case

TechCrunch recalled that in November 2023, the California Department of Motor Vehicles (DMV) accused Tesla of misleading advertising, arguing that terms like "Autopilot" and "Full Self-Driving" overstated the capabilities of its driver assistance systems. Regulators contended that these labels could mislead consumers into thinking the systems operated without driver supervision.

Tesla initially addressed the concerns by updating its marketing language, changing "Full Self-Driving Capability" to "Full Self-Driving (Supervised)" to clarify that drivers must remain attentive. However, the company continued using the Autopilot name, prompting the DMV to seek a 30-day suspension of Tesla's sales and manufacturing licenses through an administrative law judge.

Corrective Action Prevents Suspension

After the DMV provided Tesla 60 days to comply, the company discontinued the use of "Autopilot" across California, as well as in the U.S. and Canada. The DMV confirmed that these measures were sufficient to avoid the proposed license suspension, effectively resolving the regulatory dispute.

Full Self-Driving Subscription Model

Alongside these marketing changes, Tesla is encouraging adoption of its Full Self-Driving (FSD) system. Previously available for an $8,000 one-time purchase, the updated FSD Supervised system is now offered via a $99 monthly subscription.

CEO Elon Musk has indicated that the subscription fee may increase as additional capabilities are added.

Outside his Tesla business, Musk acknowledged that the SpaceX-xAI merger will bring the "most ambitious" engine thanks to the power of artificial intelligence.