Tesla has ceased using the term “Autopilot” in its advertising for electric vehicles in California, averting a potential 30-day halt on sales and manufacturing in the state.
Details of the Regulatory Action
A California administrative law judge determined in December that the company misled consumers through the use of “Autopilot” and “Full Self-Driving” labels. The judge proposed a suspension, prompting the California Department of Motor Vehicles (DMV) to grant Tesla 60 days to eliminate misleading content from marketing materials.
The DMV confirmed that Tesla implemented corrective measures by discontinuing Autopilot references in promotions. Tesla has also emphasized that drivers must remain attentive even with Full Self-Driving features active.
Origins of the Complaint
The ruling stems from a 2022 DMV complaint alleging deceptive practices. Authorities claimed that since May 2021, Tesla promoted materials suggesting the systems enable short- and long-distance trips without driver input. In truth, these vehicles neither then nor currently operate fully autonomously.
Potential Business Impact
California represents nearly one-third of Tesla’s U.S. sales, making the state a critical market. Separately, Tesla plans to pause production of Model S and Model X at its Fremont factory to repurpose the facility for manufacturing Optimus humanoid robots, with public sales targeted by the end of 2027.
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