Tesla will cease using the term “Autopilot” in its marketing materials in California to avoid a 30-day suspension of its dealer and manufacturer licenses, the California Department of Motor Vehicles (DMV) announced Tuesday.
The decision comes after the DMV accused Tesla of misleading consumers with the “Autopilot” and “Full Self-Driving” (FSD) designations for its advanced driver-assistance systems. While Tesla has revised its use of “Full Self-Driving” to clarify that driver supervision is required, the DMV initially focused its concerns on the continued use of “Autopilot.”
The DMV had previously issued an order to suspend Tesla’s sales in California, its largest U.S. Market, but delayed enforcement to allow the company time to address the allegations. Tesla’s compliance with the DMV’s request to remove the term “Autopilot” from its marketing now averts that suspension, according to reports from Bloomberg and the San Francisco Chronicle.
“Autopilot” enables Tesla vehicles to steer, accelerate, and brake within a lane on highways. The “Full Self-Driving” capability adds features like lane changes and automated reactions to traffic signals and stop signs.
The resolution of this issue occurs as Tesla, along with other electric vehicle manufacturers, faces a slowdown in demand following the expiration of key tax credits that had previously boosted sales. Tesla CEO Elon Musk has increasingly focused the company’s direction toward robotic taxis equipped with autonomous driving technology and humanoid robots.
