Tesla Drops ‘Autopilot’ Term to Avoid California DMV Suspension
Tesla has ceased using the term “Autopilot” in its marketing materials in California, averting a 30-day suspension of its dealer and manufacturer licenses. The move comes after the California Department of Motor Vehicles (DMV) found the automaker’s leverage of “Autopilot” and “Full Self-Driving” to be misleading to consumers.
DMV Findings and Corrective Action
In December 2025, the California DMV determined that Tesla’s marketing of its Advanced Driver Assistance System (ADAS) features under the name “Autopilot” violated state law. The DMV initially found Tesla in violation for misleadingly using these terms. Tesla had previously modified its marketing of “Full Self-Driving” to clarify that driver supervision is required.
By removing the term “Autopilot” from its California marketing, Tesla has satisfied the requirements set by the DMV and avoided a 30-day suspension of its licenses. This action prevents disruption to Tesla’s operations in the state, its largest U.S. Market.
Background of the Dispute
The California DMV began investigating Tesla’s marketing practices in 2022, alleging false advertising regarding the capabilities of its “Autopilot” and “Full Self-Driving” systems. An administrative law judge initially ruled for a 30-day suspension of both Tesla’s manufacturing and dealer licenses.
The judge determined that Tesla’s marketing implied a level of full automation that did not exist, potentially endangering consumers. The DMV, however, stayed the order for a suspension of the manufacturing license, allowing Tesla 60 days to address the deceptive claims. The DMV’s decision followed a review by the California Office of Administrative Hearings, which took place from July 21 to July 25, 2025.
Functionality of Tesla’s Systems
“Autopilot” enables Tesla vehicles to accelerate, brake, and stay within lane markings on highways. The “Full Self-Driving” capability allows for lane changes and reaction to traffic signals in urban environments, but still requires active driver supervision.
DMV Commitment to Safety
“The DMV is committed to safety throughout all California’s roadways and communities,” said 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.”
This resolution highlights the ongoing scrutiny of advanced driver-assistance systems and the importance of clear and accurate marketing to ensure consumer safety and understanding.