Tesla has stopped using the term “Autopilot” to market its driver assistance features in California, averting a potential 30-day suspension of its manufacturing and dealer licenses, the California Department of Motor Vehicles announced on Tuesday.
The DMV found Tesla in violation of state law in December 2025 for misleadingly using “Autopilot” and “Full Self-Driving Capability,” according to a statement released by the agency. The decision stemmed from an administrative case initiated in 2023, challenging Tesla’s descriptions of its Advanced Driving Assistance Systems (ADAS).
“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.”
Tesla had previously modified its marketing of “Full Self-Driving” to clarify that driver supervision is required. The company has now ceased using “Autopilot” as a marketing term, fulfilling the requirements set by the DMV to avoid the suspension.
The initial ruling by an administrative law judge had proposed a 30-day suspension of both Tesla’s manufacturing and dealer licenses. The DMV adopted the judge’s findings of violations but reduced the penalties, opting for the permanent stay of the manufacturing license suspension upon Tesla’s corrective action.
This action follows a period of scrutiny regarding the capabilities of Tesla’s driver assistance systems. A recent Consumer Reports ranking placed Tesla’s system eighth, trailing offerings from Ford, General Motors, Mercedes-Benz, BMW, Nissan, Toyota, and Volkswagen. Consumer Reports’ Kelly Funkhouser described the system as “not nearly as fine as what you might think it is,” according to CNBC.
Further complicating the landscape, recent filings with the National Highway Traffic Safety Administration (NHTSA) revealed that Tesla’s limited fleet of robotaxis experienced five crashes during December and January. This crash rate is four times higher than that of the average human driver over the same period and amount of driving, according to the filings.
The DMV’s decision concludes the administrative case (Case Nos. 21-02188 and 21-02189) but does not preclude further investigation or action regarding Tesla’s marketing practices or the safety of its ADAS features.