Tesla has been forced to pull the plug on its “Autopilot” branding in California to avoid getting a 30-day sales ban in the state, and this brings an end to a case that has lingered for almost three years.
In December, an administrative judge ruled that if the company didn’t comply with the DMV’s stipulations in 90 days, the 30-day sales ban would go into place. However, on Tuesday, the California DMV said the company can continue selling its EVs in the state, now that it has complied with the DMV's stipulations.
Although in the past, Tesla had clarified that Full Self Driving was "supervised," the autopilot label remained, allowing the dispute to continue.
“Since then, Tesla took corrective action and has stopped using the misleading term ‘Autopilot’ in the marketing of its electric vehicles in California,” the DMV said in a statement. The company also discontinued Autopilot in the U.S. and Canada, which not only satisfies regulators but also encourages adoption of the paid Full Self-Driving system.
California is of high importance to Tesla; the state accounts for roughly 11% of its global deliveries, meaning a 30-day pause could have cost it a significant amount in revenue and given rivals an opening to capture buyers.
Regulators seem to be observing closely. States including Texas, Florida, and New York have expressed interest in similar oversight, and the National Highway Traffic Safety Administration is investigating Tesla’s systems after several crashes involving emergency vehicles.
What the company will call its driver assistance features in California going forward remains unclear, though generic terms like “Driver Assist” or “Advanced Safety Features” seem likely.
The regulatory pressure is more than just a change in branding. Tesla will need to provide more detailed performance data, including disengagement rates and real-world crash statistics, revealing how the technology performs compared with its claims.
Ogbonda Chivumnovu
