July 6, 2026

Tesla avoids California license suspension by dropping ‘self-driving’ claims

Tesla avoids California license suspension by dropping 'self-driving' claims

Tesla successfully avoided a 30-day suspension of its dealer and manufacturer licenses from the California DMV by removing the term “autopilot” from its marketing materials. The regulatory action stemmed from accusations that Tesla misrepresented its full self-driving feature as capable of autonomous operation, despite the necessity for driver supervision. Following these allegations and to ensure compliance, Tesla rebranded the feature to “full self-driving (supervised)” in December 2025. This rebranding aligns with a broader shift where Tesla now requires a monthly subscription for the full self-driving feature, while basic traffic-aware cruise control remains standard in new vehicles.

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