Tesla avoids sales freeze in California after dropping 'Autopilot' marketing

Core Viewpoint - Tesla has avoided a 30-day suspension of its dealer and manufacturer licenses in California by taking corrective actions regarding its marketing of the "Autopilot" feature [1][2]. Group 1: Regulatory Actions - The California Department of Motor Vehicles (DMV) accused Tesla of misleading consumers by advertising its "Autopilot" and "Full Self-Driving" systems as capable of autonomous driving [2]. - An administrative law judge concluded in November 2025 that Tesla's use of the term "Autopilot" violated California law, recommending a 30-day suspension of the company's licenses if the branding continued [7]. - The DMV adopted the judge's findings in December but stayed the suspension, allowing Tesla 60 days to comply with the ruling [7]. Group 2: Marketing and Product Changes - Tesla has modified its "Full Self-Driving" branding to "Full Self-Driving (Supervised)" as of September 2024, clarifying that the system operates "with minimal driver intervention" [6][8]. - In January, Tesla discontinued its Autopilot packages for new vehicles in the US and Canada, eliminating the $8,000 upfront purchase option for Full Self-Driving (Supervised) [9]. - The "FSD (Supervised)" is now available only as a $99-per-month subscription, linking Tesla's self-driving ambitions to recurring software revenue [9]. Group 3: Importance of California Market - California is critical for Tesla as it represents the company's largest US sales market and is home to two manufacturing hubs [2].