Tesla has avoided a 30-day suspension of its sales and manufacturing licenses in California after implementing changes to its marketing practices and discontinuing the "Autopilot" system. The California Department of Motor Vehicles (DMV) confirmed that Tesla took the required actions to address concerns regarding the potential for deceptive marketing related to its advanced driver assistance systems.
The California Department of Motor Vehicles (DMV) confirmed that Tesla took the required actions to address concerns regarding the potential for deceptive marketing related to its advanced driver assistance systems.
Background of the Dispute
The resolution concludes a case initiated by the California DMV nearly three years ago. In November 2023, the DMV accused Tesla of violating state law through deceptive marketing practices concerning its "Autopilot" and "Full Self-Driving" systems. The regulator contended that these terms could potentially mislead customers regarding the actual capabilities of the systems, which require human supervision and are not fully autonomous.
The regulator contended that these terms could potentially mislead customers regarding the actual capabilities of the systems, which require human supervision and are not fully autonomous.
In December, an administrative law judge supported the DMV’s recommendation for a 30-day suspension of Tesla’s licenses. The DMV endorsed this ruling and provided Tesla with a 60-day period to achieve compliance.
Tesla's Corrective Actions
In response to the DMV's directives, Tesla undertook several corrective actions:
- The company discontinued the use of the term “Autopilot” in its vehicle marketing within California.
- Tesla had previously modified the term “Full Self-Driving Capability” to “Full Self-Driving (Supervised)” to clarify the requirement for driver monitoring.
- Beyond marketing adjustments, Tesla fully discontinued the "Autopilot" system in both the U.S. and Canada in January.
- The "Autosteer" feature was removed from new vehicles, beginning with the Cybertruck and subsequently expanding to base-trimmed Model 3 and Model Y vehicles. While this removal coincided with compliance efforts, it was not a direct requirement of the Autopilot branding change.
- Tesla has also reportedly ceased offering Autopilot in some markets where its "Full Self-Driving" system is unavailable.
Outcome and System Availability
The California DMV stated that Tesla's actions successfully prevented the suspension of its dealer and manufacturer licenses.
The "Full Self-Driving (Supervised)" system, which previously carried an $8,000 one-time purchase fee, is now exclusively available through a $99 monthly subscription. Tesla CEO Elon Musk has indicated that this subscription fee may be adjusted as the system's capabilities advance.