Tesla avoids 30-day suspension in California after removing Autopilot

The California Department of Motor Vehicles is suspending Tesla’s sales and production licenses for 30 days because the EV maker has stopped using the term “Autopilot” in advertising its vehicles in the state.

judgment, released late Tuesdayit means that Tesla can continue to sell its EVs in California without being interrupted by the legalization of a lawsuit that has been brewing for nearly three years. California is Tesla’s largest US market.

In November 2023, the DMV filed charges that Tesla violated state law by using deceptive advertising for Autopilot, its primary driver assistance system, and its Full Self-Driving driver assistance program. The regulator said the term misleads customers and undermines the ability of advanced driver assistance systems.

Tesla stopped using the term “Full Self-Driving Capability,” and instead used Full Self-Driving (Monitoring) to better describe the system and make it clear that drivers need to pay attention. But Tesla continued to operate Autopilot, prompting the DMV to refer the case to a legal judge at the California Office of Administrative Hearings.

In December, an administrative law judge agreed to 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 jump; instead, the federal regulator gave Tesla 60 days to comply.

“Since then, Tesla has taken steps to stop using the incorrect term ‘Autopilot’ in advertising its electric vehicles in California,” the DMV said in a release on its website. “Tesla had already changed its use of the term ‘Full Self-Driving’ to make it clear that driver monitoring is necessary. By doing so, Tesla will avoid a 30-day suspension of its sales and production licenses in the state by the DMV.”

Tesla didn’t stop using the term Autopilot, however. In January, the company left Autopilot in both the US and Canada. The move not only brought it into line with the DMV but was also seen as a way to promote the adoption of FSD, which unlike Autopilot, requires the owner to pay for an advanced system.

FSD Supervised, which until February 14 required a one-time investment of $8,000, is available only for a monthly subscription of $99. The registration fees are expected to increase as the system expands, Tesla CEO Elon Musk said he said.