Autopilot debate: Tesla avoids sales ban in California

Tesla’s ‘Autopilot’ is not a feature that enables a vehicle to drive fully autonomously. Instead, it is an advanced driver-assistance system (ADAS) that combines adaptive cruise control—adjusting the vehicle’s speed to match traffic ahead—with a steering assistant. This helps maintain the vehicle’s position in clearly marked lanes while the adaptive cruise control is active. In Europe, an ‘Enhanced Autopilot’ with additional functionalities is available for an extra charge.

The California Department of Motor Vehicles (DMV) considered the use of the term ‘Autopilot,’ along with the phrase ‘Full Self-Driving,’ to be misleading to customers and initiated legal proceedings in 2023. In response, Tesla clarified the ‘Full Self-Driving’ term by adding ‘(supervised)’ to it, making it clear that the system does not operate fully autonomously but requires driver supervision.

However, Tesla took no action regarding the term ‘Autopilot,’ prompting the DMV to announce in December that it would completely halt the sale of Tesla vehicles in the state for 30 days. Tesla subsequently backed down: according to a recent DMV statement, the company has now taken corrective measures and no longer uses the misleading term ‘Autopilot’ in its California advertising.

DMV Director Steve Gordon commented: “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.”

However, the outcome feels like a bittersweet win: Tesla has completely phased out its classic ‘Autopilot’ in the USA and Canada. Since 23 January 2026, Basic Autopilot is no longer advertised or delivered as a standard feature for new vehicles in North America. Instead, new Teslas in the region are now only equipped with a basic adaptive cruise control system (Traffic-Aware Cruise Control). Customers who want the vehicle to steer itself must now subscribe to Full Self-Driving (Supervised), which offers numerous additional functionalities.

Update 24 February 2026

Tesla has issued a lawsuit against the California Department of Motor Vehicles (DMV). The manufacturer aims to overturn the administrative decision that Tesla engaged in misleading advertising in connection with the terms ‘Autopilot’ and ‘Full Self Driving’. Tesla argues that the agency never proved that consumers were actually confused about whether its cars could actually drive without a human behind the wheel.

Furthermore, the DMV has been aware of the terms since 2014, meaning that any action against them is long past the statute of limitations. However, it remains unclear why Tesla is now challenging the DMV’s decision at all, as the DMV is now satisfied with the changes made by Tesla and there are no longer any plans to ban the sale of Tesla vehicles.

dmv.ca.gov, techcrunch.com, electrek.co (update)