Tesla successfully took the required action to stop using the term “Autopilot” in the marketing of its vehicles in California, as required by the California Department of Motor Vehicles last December.

In doing so, Tesla avoids having its dealer and manufacturer licenses suspended by DMV for 30 days.

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

On Dec. 16, 2025, the DMV issued its decision in the Tesla administrative case (Case Nos. 21-02188 and 21-02189), adopting the administrative law judge’s proposed decision, which concluded that Tesla’s use of the term “Autopilot” to describe its vehicles’ Advanced Driver Assistance System (ADAS) features is misleading and violates state law.

The ALJ’s proposed decision ordered suspensions of Tesla’s manufacturing license and its dealer license for 30 days. Upon review, the DMV’s decision adopted the ALJ’s findings regarding violations, but reduced the penalties, immediately imposing a permanent stay of the suspension of Tesla’s manufacturer’s license and giving Tesla 60 days to act regarding its use of the term “Autopilot.”

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

Background

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

Beginning in May 2021, Tesla ADAS 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 Nov. 20, 2025.