The California Department of Motor Vehicles today issued its decision in the Tesla administrative case, adopting the administrative law judge’s proposed decision, which concludes that Tesla’s use of the terms “autopilot” and “Full Self-Driving Capability” to describe its vehicles’ Advanced Driving Assistance Features is misleading and violates state law.

“The DMV is committed to safety on California’s roadways,” said DMV Director Steve Gordon. “The DMV’s decision today confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers and pedestrians protected. Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve in California’s nation-leading and supportive innovation marketplace.”

The administrative law judge’s proposed decision ordered suspensions of Tesla’s manufacturing license and its dealer license for 30 days. Upon review, the DMV’s decision adopts the ALJ’s findings regarding violations, but reduces the penalties, immediately imposing a permanent stay of the suspension of Tesla’s manufacturer’s license and giving Tesla 60 days to take action regarding its use of the term “autopilot.” If Tesla fails to address the issue, after 60 days it will be subject to the 30-day suspension of its dealer license.

Background

DMV alleged that Tesla made and disseminated statements that were misleading in advertising their vehicles as equipped, or potentially equipped, with features tantamount to autonomous driving capability.

Beginning in May 2021, Tesla advertised advanced driver assistance system features in written marketing materials primarily on Tesla’s website using the product label and descriptions “Autopilot” and “Full Self-Driving Capability,” and the phrase “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.” However, vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles. Based on these false advertisements, DMV filed accusations against Tesla’s manufacturer and dealer licenses in November 2023. Tesla subsequently discontinued use of the term “Full Self-Driving Capability,” instead specifying that the system requires driver supervision by using the term “Full Self-Driving (Supervised).”

The California Office of Administrative Hearings held a hearing before an ALJ in this case on July 21–25, 2025, and the ALJ issued a proposed decision on November 20, 2025. By statute, that proposed decision is subject to review by DMV and today’s decision adopts the ALJ’s decision, with the modified penalty described above.

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