Tesla disables "Autopilot" branding in California to avoid 30-day sales ban

On February 18, IT House reported that to avoid a 30-day sales ban issued by the California Department of Motor Vehicles, Tesla has ceased using the term “Autopilot” to promote its electric vehicles in the California market.

According to IT House, this concession resolves a long-standing dispute between the automaker and California, centered on Tesla being accused of exaggerating vehicle capabilities and misleading consumers into believing the cars are fully autonomous. The California DMV filed charges against Tesla in 2023, pointing out that the company’s official promotional materials used terms like “Autopilot” and “Full Self-Driving Capability”; Tesla subsequently revised the latter to “Full Self-Driving (Driver Assist)” to clarify that human drivers must operate the vehicle.

These promotional terms date back to May 2021, when the California DMV believed Tesla had crossed legal and ethical lines in marketing its new driving technology. In addition to the controversial product naming, Tesla claimed its advanced driver-assistance system “can complete short and long trips without any driver operation.”

In December last year, DMV Director Steve Gordon issued a final warning to Tesla, demanding corrective action within 90 days, or the vehicles would be suspended from sale for one month. This penalty could have dealt a heavy blow to the electric vehicle giant, as CEO Elon Musk was attempting to enter the autonomous taxi commercial market at the time.

On Tuesday of this week, Gordon stated that Tesla has “taken necessary measures to comply with California consumer protection regulations,” and he expressed satisfaction with the company’s actions.

Administrative Law Judge Juliet Cox previously ruled that Tesla’s continued use of the term “Autopilot” violated state law. Cox had proposed a harsher penalty: freezing Tesla’s vehicle production and sales for 30 days.

Ultimately, the California DMV eased the penalty, limiting only Tesla dealerships’ licensing and granting the company time to make corrections. Although Tesla’s spokesperson initially took a firm stance, claiming no consumer complaints had been received, the company ultimately chose to implement changes.