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Tesla will avoid a 30-day suspension of its dealer and manufacturer licenses in California after complying with a state order to stop using the word “autopilot” when marketing its cars, state regulators said Tuesday.
The ruling comes after the California Department of Motor Vehicles (DMV) found in December 2025 that Tesla violated state law by misrepresenting its electric vehicles with the terms “autopilot” and “fully self-driving.”
The regulator said on Tuesday that Elon Musk’s electric car company took “corrective action” and stopped using the term “autopilot,” and noted that Tesla has already changed its use of the term “full-autopilot” to specify that driver supervision is required.
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Tesla avoided a 30-day suspension of its California sales licenses after regulators said the company complied with an order to stop using the word “autopilot” in its advertising. (Yichuan Cao/NurPhoto/Getty Images)
“The DMV is committed to the safety of all California roads and communities,” California DMV Director Steve Gordon said in a statement. “The department is pleased that Tesla has taken the necessary action to remain in compliance with the State of California’s consumer protections.”
According to the DMV, marketing materials for Tesla’s Advanced Driver Assistance System (ADAS) starting in 2021 used the words “autopilot” and “full self-driving capability,” along with the phrase, “This system is designed to be able to conduct short and long trips without any action required by the person in the driver’s seat.”
However, the DMV said the vehicles “could not at the time of those advertisements, and cannot now, operate as private vehicles.”
The DMV filed charges against Tesla’s manufacturer and dealer licenses in November 2023, and automaker Tesla stopped using the term “full self-driving capability” after realizing the system required driver supervision.
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California regulators say Tesla has taken corrective measures in its advertising of driver assistance features, to avoid a temporary suspension of its sales licenses. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Last year, the California Office of Administrative Hearings held a hearing before an administrative law judge, who issued a proposed ruling in November that found the term “autopilot” violated state law.
The DMV had given Tesla 60 days to take corrective action. By complying, Tesla avoided a temporary suspension in California – its largest US market.
According to its website, Tesla’s “autopilot” feature allows cars to keep up with the speed of traffic and help steer within a marked lane.
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Tesla, led by Elon Musk, has complied with a state order to stop using the word “autopilot” in California advertising, regulators said. (Fabrice COFFRINI/AFP via Getty Images/Getty Images)
The “full self-driving” feature warns drivers of stop signs and traffic lights, and can slow the car to a stop while approaching the signal, all with the driver’s supervision.
FOX Business has reached out to Tesla for comment.
