SACRAMENTO, Calif. – The California Department of Motor Vehicles has determined that Tesla Motors violated state law by misleadingly using the terms “autopilot” and “Full Self-Driving Capability” in its marketing materials.
Officials say this decision follows an administrative case where the DMV found these terms to be deceptive and violating California law.
“The DMV is committed to safety on California’s roadways,” said DMV Director Steve Gordon. “The DMV’s decision today confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers and pedestrians protected.”
The administrative law judge initially recommended suspensions of Tesla’s manufacturing and dealer licenses for 30 days. However, the DMV’s decision adopted the judge’s findings but reduced the penalties. Tesla has been given 60 days to address the misleading use of the term “autopilot.”
The DMV’s allegations against Tesla began in May 2021, when the company advertised its vehicles with advanced driver assistance system (ADAS) features using terms like “autopilot” and “Full Self-Driving Capability.” These advertisements suggested that the vehicles could operate autonomously, which was not the case.
In response to these accusations, Tesla stopped using the term “Full Self-Driving Capability” and now emphasizes that driver supervision is required by using “Full Self-Driving (Supervised).”
A hearing was held by the California Office of Administrative Hearings from July 21-25, 2025, and the proposed decision was issued on November 20, 2025.
The DMV has now adopted this decision with a modified penalty, providing Tesla an opportunity to rectify the issue.