Tesla avoids suspension by California regulator after corrective marketing changes

The Tesla name is shown on the back of a Tesla Model Y at a Tesla dealership in Buena Park, California, U.S., January 28, 2026. REUTERS/Mike Blake · Reuters

Reuters

Wed, February 18, 2026 at 10:43 AM GMT+9 1 min read

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Feb 17 (Reuters) - Tesla will avoid a 30-day suspension of its dealer and manufacturer licenses ‌in California after the U.S. electric vehicle maker ‌stopped using the term “autopilot” in marketing of its vehicles in ​the state, a regulator said on Tuesday.

The reprieve from the California Department of Motor Vehicles (DMV) comes as Tesla and other EV makers grapple with a ‌plunge in demand following ⁠the expiration of key tax credits that had boosted sales.

Tesla CEO Elon Musk ⁠has switched the company’s focus toward robotaxis equipped with self-driving technology, as well as humanoid robots.

In 2022, ​the ​DMV accused Tesla of ​misleading consumers by using ‌names “autopilot” and “Full Self-Driving” (FSD) for its advanced driver-assistance features.

The DMV narrowed its focus last December to the term “autopilot” as Tesla revised its use of the term “Full Self-Driving” to clarify that driver supervision is required.

The ‌regulator had deferred an order ​to suspend Tesla sales in ​California, its biggest ​U.S. market, giving the EV maker ‌additional time to address the ​allegations.

“Autopilot” enables Tesla ​vehicles to accelerate, brake and remain within their lanes on highways. “Full Self-Driving” allows vehicles to ​change lanes ‌and respond to traffic signals on city streets.

(Reporting ​by Natalia Bueno Rebolledo in Mexico City; ​Editing by Sherry Jacob-Phillips)

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