The electric vehicle maker Tesla has avoided a potential 30-day suspension of its licenses to sell and manufacture cars in California. The suspension was averted after the company agreed to stop using the term “autopilot” in its marketing materials within the state, according to a statement from the California Department of Motor Vehicles.
This resolution comes at a time when Tesla and other EV manufacturers are facing a significant drop in demand, following the expiration of key government tax credits that had previously encouraged sales.
The conflict dates back to 2022, when the state regulator accused Tesla of misleading consumers with the names of its driver-assistance features. The company’s “Autopilot” and “Full Self-Driving” (FSD) systems were at the center of the allegations, with the DMV arguing the terms suggested the cars could operate autonomously.
Last December, the DMV narrowed its focus specifically to the term “autopilot.” This shift occurred after Tesla revised its marketing for “Full Self-Driving” to more clearly state that the feature requires active driver supervision at all times. The regulator had postponed a final decision on a sales suspension, giving Tesla more time to address the concerns.
Technically, “Autopilot” is an advanced system that allows Tesla vehicles to accelerate, brake, and stay within their lanes on highways. The more advanced “Full Self-Driving” capability adds functions like automated lane changing and responding to traffic signals on city streets. Despite the names, both systems are designed to assist a driver who must remain fully engaged and ready to take control.
