Tesla Avoids California Suspension By Dropping ‘Self-Driving’ Claims

Authored by Rob Sabo via The Epoch Times (emphasis ours),

Tesla Motors avoided a 30-day suspension of its dealer and manufacturer licenses from the California Department of Motor Vehicles (DMV) by removing the term “autopilot” from its vehicle marketing efforts in California.

According to a statement issued by the California DMV on Feb. 17, Tesla had marketed its full self-driving feature as essentially an autonomous driving feature. Although full self-driving is a hands-free feature, Tesla owners still need to actively supervise the operation of their vehicles.

The DMV said Tesla had been marketing its advanced driver assistance system (ADAS) as a full driver-free autopilot feature since 2021 by including terms such as “autopilot” and “full self-driving capability” in marketing collateral and on its website.

“The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat,” Tesla’s website formerly said. The California DMV stated that drivers should be present and supervise the self-driving feature.

“Vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the DMV wrote.

According to the California DMV, Tesla removed that language from its website and marketing efforts in December 2025. The DMV had initiated accusations of false advertisement against Tesla’s dealer and manufacturer licenses in November 2023.

The California Office of Administrative Hearings heard the case last July and made a proposed decision on Nov. 20, 2025. Tesla was given 60 days to address and remedy the issue of the suspension of its licenses in the state for 30 days. Tesla subsequently rebranded the feature as “full self-driving (supervised)” to clarify that drivers still need to oversee the driving process.

“The DMV is committed to safety throughout all California’s roadways and communities,” DMV Director Steve Gordon said. “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.”

“California has zero tolerance for misleading advertising that puts safety at risk,” the DMV added. “When companies make false claims about vehicle capabilities, they endanger lives, and the state will hold them accountable.”

Days earlier, Tesla CEO Elon Musk said in a post on X on Feb. 13 that Tesla would no longer offer full self-driving on vehicles sold after Feb. 14. In order to get the feature, Tesla owners now need to pay a $99 monthly subscription.

Tesla had included basic autopilot for close to seven years on its vehicles that included two features, traffic-aware cruise control (TACC) to match the speed of traffic, and autosteer, which centers vehicles inside a travel lane.

New vehicles now come standard with just TACC, and Tesla owners will have to pay a monthly fee for the full self-driving feature. Previously, Tesla owners could opt for a one-time payment to have the full self-driving included on their vehicles at the time of purchase.

Reaching 10 million paid full self-driving subscriptions is one of many performance milestones required in Musk’s $1 trillion compensation package.