The California Department of Motor Vehicles (DMV) has decided not to impose a 30-day suspension on Tesla's sales and manufacturing licenses. This decision comes after the electric vehicle manufacturer ceased using the term "Autopilot" in its marketing efforts within the state.
Announced late Tuesday, this ruling allows Tesla to continue its operations in California without any disruption, effectively resolving a legal matter that has persisted for nearly three years.
In November 2023, the DMV had accused Tesla of breaching state laws by employing misleading marketing tactics related to its Autopilot system and the more advanced Full Self-Driving software. The regulator argued that these terms could mislead consumers about the actual capabilities of the vehicles' driver assistance technologies.
In response, Tesla modified its terminology, changing "Full Self-Driving Capability" to "Full Self-Driving (Supervised)" to clarify that driver oversight is still necessary. However, the company initially retained the Autopilot label, which led the DMV to escalate the case to an administrative law judge.
In December, the judge sided with the DMV, endorsing a 30-day suspension of Tesla's licenses as a penalty. Nevertheless, the DMV opted to give Tesla 60 days to comply rather than immediately enforce the suspension.
The DMV confirmed that Tesla has since taken corrective measures by discontinuing the use of the "Autopilot" term in its marketing materials. The agency stated, "Tesla had previously adjusted its use of the term "Full Self-Driving" to ensure that driver supervision is emphasized. By implementing these changes, Tesla will not face a 30-day suspension of its dealer and manufacturer licenses."
Moreover, Tesla has gone a step further by discontinuing Autopilot entirely in the U.S. and Canada as of January. This strategic move not only aligns with DMV regulations but also aims to promote the adoption of the Full Self-Driving system, which requires a payment for the upgraded service.
The FSD Supervised feature, which previously required an $8,000 upfront payment, is now available through a monthly subscription priced at $99. Tesla's CEO, Elon Musk, has indicated that this subscription fee may rise as the system evolves.
