Tesla Drops 'Autopilot' Marketing in California, Averts Sales Ban

Tesla has removed the term 'Autopilot' from its marketing materials in California, a move that prevents a potential 30-day suspension of its sales and manufacturing operations in the state. The action follows a December ruling by a California administrative law judge, who found the company’s use of 'Autopilot' and 'Full Self-Driving' to be misleading. The judge recommended the ban, but the state's Department of Motor Vehicles gave Tesla a 60-day window to revise its advertising.

The DMV confirmed this week that Tesla has complied, halting its use of the contested language. Tesla had previously clarified that its 'Full Self-Driving' feature still requires active driver supervision. The case stemmed from a 2022 DMV complaint alleging that, since May 2021, Tesla's marketing implied its vehicles could operate without human intervention—a capability the agency states the cars have never possessed.

Avoiding a ban is a significant relief for Tesla, as California represents close to one-third of its U.S. sales. The decision comes as the company shifts production at its Fremont factory, halting Model S and X assembly to retool the space for its Optimus humanoid robots. Tesla aims to begin public sales of Optimus by the end of 2027.