Tesla changes marketing after DMV ruling on autonomous driving claims

Tesla has stopped using the term "Autopilot" in marketing materials in California to avoid a potential 30-day suspension of sales and production in the state. An administrative judge previously ruled that the company misled consumers by using the terms "Autopilot" and "Full Self-Driving" when promoting its electric vehicles. Following the court decision, the California Department of Motor Vehicles gave Tesla 60 days to remove the disputed language.

The DMV's lawsuit was filed back in 2022. The agency argued that starting in 2021, Tesla distributed materials that created the impression of fully autonomous vehicles. Specifically, advertisements claimed the system could handle short and long trips without driver involvement. However, the regulator maintains that at the time these statements were published—and still today—Tesla vehicles do not meet the level of fully autonomous transportation and require constant human supervision.

According to the DMV, Tesla complied with the order and changed its marketing materials. The company had previously clarified that even the Full Self-Driving feature requires mandatory driver oversight. This move allowed the automaker to avoid sanctions that could have seriously impacted its business, given that California accounts for nearly a third of Tesla's U.S. sales.

Against this backdrop of regulatory pressure, Tesla is also reassessing its strategic priorities. The company recently announced it will stop producing Model S and Model X vehicles at its Fremont factory to retool the facility for manufacturing Optimus humanoid robots. Tesla plans to begin sales of these devices by the end of 2027.