The California Department of Motor Vehicles Allows Tesla to Continue Sales in California
The California Department of Motor Vehicles (DMV) has made a decision not to suspend Tesla’s sales and manufacturing licenses for 30 days. This decision comes after Tesla stopped using the term “Autopilot” in the marketing of its vehicles in the state. The DMV’s decision means that Tesla can continue selling its electric vehicles in California without any interruptions. This officially settles a case that has been ongoing for nearly three years, as California is Tesla’s largest market in the U.S.
In November 2023, the DMV filed accusations against Tesla, stating that the company had violated state law by using deceptive marketing practices for its Autopilot and Full Self-Driving driver assistance systems. The state regulator argued that these terms misled customers and misrepresented the capabilities of the advanced driver assistance systems.
Despite Tesla modifying the term “Full Self-Driving Capability” to “Full Self-Driving (Supervised)” to accurately describe the system and clarify the need for driver supervision, the company continued to use the term “Autopilot.” This led the DMV to refer the case to an administrative law judge at the California Office of Administrative Hearings.
In December, the administrative law judge agreed with the DMV’s request to suspend Tesla’s sales and manufacturing licenses in California for 30 days as a penalty for its actions. However, the DMV gave Tesla 60 days to comply with the ruling before taking action.
According to a release on the DMV’s website, Tesla has since taken corrective action by ceasing the use of the misleading term “Autopilot” in its marketing in California. The company also discontinued Autopilot in the U.S. and Canada in January, further aligning with the DMV’s requirements.
Additionally, Tesla has made changes to its Full Self-Driving system, shifting from a one-time $8,000 fee to a monthly subscription model priced at $99. Tesla CEO Elon Musk has indicated that the subscription fee may increase as the system evolves and becomes more capable.
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