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Tesla Dodges California License Suspension
18 Feb
Summary
- Tesla avoids a 30-day license suspension in California.
- The decision follows Tesla's removal of 'Autopilot' marketing.
- The DMV cited deceptive marketing practices for the case.
The California Department of Motor Vehicles (DMV) has decided not to suspend Tesla's sales and manufacturing licenses for 30 days. This resolution stems from Tesla ceasing the use of the term "Autopilot" in its vehicle marketing within the state. This decision allows Tesla to continue its sales operations in California without disruption and concludes a case that has been ongoing for close to three years.
Previously, in November 2023, the DMV accused Tesla of violating state law through misleading marketing of its driver assistance systems, specifically "Autopilot" and "Full Self-Driving." The regulator argued that these terms created a false impression of the systems' capabilities. Tesla had already modified its "Full Self-Driving" naming to "Full Self-Driving (Supervised)" to emphasize the need for driver oversight.
Following an administrative law judge's agreement in December to suspend Tesla's licenses, the DMV granted Tesla a 60-day compliance period. The DMV confirmed that Tesla's corrective action to stop using "Autopilot" in California marketing averted the license suspension. Tesla also discontinued "Autopilot" entirely in the U.S. and Canada in January, a move seen as compliance and a push for its paid "Full Self-Driving" system.
