Tesla has managed to dodge a major bullet in California, avoiding a 30-day suspension of its sales and manufacturing licenses. This decision means you can still buy your Teslas in California without any hiccups. This is a big deal, especially since California is Tesla’s largest U.S. market.
This whole situation has been a saga for nearly three years, all stemming from the California Department of Motor Vehicles (DMV) taking issue with how Tesla marketed its advanced driver assistance systems. Specifically, the DMV filed accusations back in November 2023, arguing that terms like “Autopilot” and “Full Self-Driving” were misleading customers and overstating what the software could actually do.
Tesla did make some changes along the way. They stopped using “Full Self-Driving Capability” and switched to “Full Self-Driving (Supervised),” which, to be fair, is a much more accurate description. It clearly tells you that you, the driver, still need to be paying attention. However, they held onto the “Autopilot” term for a while, and that’s what kept the DMV on their case, eventually sending it to an administrative law judge.
It’s a smart business move for Tesla, but a big change for your wallet
In December, that judge actually sided with the DMV, recommending a 30-day suspension of Tesla’s licenses in California. The DMV agreed with the ruling, but they didn’t immediately drop the hammer. Instead, they gave Tesla a 60-day window to comply with their demands. And Tesla, it seems, used that time wisely.
The DMV confirmed in a release on its website that Tesla “took corrective action and has stopped using the misleading term ‘Autopilot’ in the marketing of its electric vehicles in California.” They also noted that Tesla had already adjusted the “Full Self-Driving” terminology. So, by making these changes, Tesla successfully avoided that potentially very disruptive 30-day suspension.
But here’s where it gets really interesting, and frankly, a bit jaw-dropping for owners. Tesla didn’t just stop using the term “Autopilot” in California marketing. In January, the company completely discontinued the Autopilot feature in the U.S. and Canada. This move not only helped them comply with the DMV’s demands but also looks like a strategic play to boost adoption of their Full Self-Driving system.
See, Autopilot used to be a standard feature in Teslas. Now that it’s gone, if you want those advanced driver assistance features, you’re pretty much nudged toward FSD. And FSD isn’t free. Until February 14, FSD Supervised was available for an $8,000 one-time fee. But now, it’s only offered as a monthly subscription for $99. Tesla CEO Elon Musk has even hinted that this subscription fee is likely to increase as the system becomes even more capable.
So, while Tesla avoided a licensing nightmare, it’s definitely going to cost owners a pretty penny if they want to keep enjoying those advanced driving capabilities.
Published: Feb 18, 2026 04:00 pm