Hajra Naz
California won’t suspend Tesla’s license to sell cars in the state—at least not now. The decision came after the company quietly stopped using the word “Autopilot” in its California marketing.
The ruling, announced Tuesday night, allows Tesla to keep selling cars in what remains its largest U.S. market. It also brings an end to a dispute that had been hanging over the company for nearly three years.
The issue began in November 2023, when the California DMV accused Tesla of misleading advertising. Regulators argued that terms like “Autopilot” and “Full Self-Driving” may have given buyers the impression that the vehicles were capable of fully driving themselves without human input.
Tesla later adjusted its branding, renaming the system “Full Self-Driving (Supervised)” to make clear that driver attention is still required. However, the company continued using the term “Autopilot,” which became the main sticking point.
Read More: Tesla will now offer Full Self-Driving (Supervised) exclusively via subscription
The matter was eventually referred to an administrative law judge, keeping the case alive until Tesla agreed to make further changes.
In December, the judge approved a 30-day suspension of Tesla’s licenses as a penalty. Instead of enforcing it immediately, regulators gave Tesla 60 days to comply with the ruling.
Tesla eventually removed the “Autopilot” branding from its California marketing materials. In an official statement, the DMV confirmed that because Tesla took corrective action—and had already clarified that FSD requires driver supervision—the 30-day suspension would not move forward.
The changes extended beyond California. In January, Tesla discontinued the Autopilot branding across the U.S. and Canada. The move not only addressed regulatory concerns but was also seen as an effort to encourage more drivers to adopt Full Self-Driving (Supervised), which requires an additional payment.
Previously, FSD Supervised was available for a one-time fee of $8,000. As of February 14, it is now offered exclusively as a $99-per-month subscription. CEO Elon Musk has indicated that the subscription price could increase as the system becomes more advanced.
