Tesla escapes suspension in California by ceasing ‘autopilot’ advertising

Tesla Avoids License Suspension in California

Tesla has successfully sidestepped a potential 30-day suspension of its dealership and manufacturing licenses in California. This follows the company’s compliance with a state directive to discontinue using the term “Autopilot” in its vehicle sales, as announced by state regulators on Tuesday.

This decision came after the California Department of Motor Vehicles (DMV) found, back in December 2025, that Tesla had misled consumers by promoting its electric cars with terms such as “autopilot” and “fully autonomous.”

The DMV noted that Tesla has taken “corrective action” to cease using “Autopilot,” and also clarified its earlier use of “fully self-driving” by emphasizing that driver supervision is essential.

China’s Concerns over Tesla Features

Interestingly, alongside this regulatory scrutiny, China is looking to ban specific features typically found in Tesla vehicles due to worries regarding trapped passengers.

California DMV Director, Steve Gordon, emphasized the importance of safety on local roads, expressing satisfaction that Tesla had made the necessary adjustments to comply with consumer protection laws.

The DMV highlighted that Tesla’s marketing materials for its Advanced Driver Assistance Systems (ADAS) since 2021 used misleading phrases like “autopilot” and claimed the cars could handle “short and long-distance trips without any action by the person in the driver’s seat.” However, the agency clarified that these vehicles were never capable of operating as self-driving vehicles, neither in the past nor currently.

The DMV had filed a complaint against Tesla’s manufacturing and dealer license in November 2023. Since then, Tesla has ceased the use of “full self-driving capability” after acknowledging the need for driver oversight.

Tesla’s Future Plans

In the backdrop of these developments, there are discussions regarding Tesla’s plans to discontinue production of the Model S and Model X, shifting focus to robotic technologies by 2026.

Last year, an administrative law judge from the California Office of Administrative Hearings proposed a ruling in November that deemed the term “Autopilot” a violation of state law. Following this, Tesla was given a 60-day window to adhere to corrective measures, which they met, thus avoiding a suspension in their largest U.S. market.

Tesla’s “Autopilot” feature is designed to synchronize the vehicle’s speed with traffic and assist in steering within designated lanes, according to the information available on their website.

The “Full Autonomous Driving (Monitored)” capability can alert drivers to stop signs and traffic signals, capable of bringing the vehicle to a halt when approaching a red light, all while under the supervision of the driver.