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Tesla Drops 'Autopilot' in California to Comply with Ruling
The automaker will discontinue using the term in marketing as part of a settlement with the state's DMV.
Published on Feb. 22, 2026
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Tesla has agreed to stop using the term 'Autopilot' in marketing its electric vehicles in California, following a ruling by the state's Department of Motor Vehicles that the term was misleading. The DMV had threatened to suspend Tesla's dealer and manufacturer licenses in the state for 30 days if the company did not make the change. As part of the settlement, Tesla has also discontinued its former Autopilot mode and now requires owners to pay a monthly subscription fee for its 'FSD Supervised' driver-assistance system.
Why it matters
The ruling highlights ongoing concerns about the marketing and capabilities of advanced driver-assistance systems, which can give consumers an unrealistic impression of a vehicle's self-driving abilities. California is Tesla's largest market, making up about 30% of its sales, so the change could have a significant impact on the company's business in the state.
The details
In December, a California judge ruled that Tesla was using deceptive wording in its marketing of the Autopilot and Full Self-Driving features. The DMV argued that both terms misled customers about the true capabilities of the driver-assistance systems, which still require active human monitoring. Tesla had previously changed the 'Full Self-Driving' term to include the '(Supervised)' clarification, but the DMV still found the 'Autopilot' term to be misleading. As part of the settlement, Tesla has now discontinued the Autopilot mode altogether and requires owners to pay a $99 monthly subscription fee for the new 'FSD Supervised' system.
- In December, a judge ruled that Tesla was using deceptive wording in its marketing.
- The DMV gave Tesla a 60-day grace period to make the required changes.
- On February 18, 2026, the DMV announced that Tesla had taken the 'corrective action' and stopped using the 'Autopilot' term in California.
The players
Tesla
An American electric vehicle and clean energy company that designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels, and related products.
California Department of Motor Vehicles (DMV)
The government agency responsible for vehicle registration, driver's licensing, and regulation of the automotive industry in the state of California.
What they’re saying
“'Since then, Tesla took corrective action and has stopped using the misleading term 'Autopilot' in the marketing of its electric vehicles in California.'”
— California DMV (Press Release)
What’s next
The DMV has stated that by taking the required action, Tesla will avoid having its dealer and manufacturer licenses suspended in California for 30 days.
The takeaway
This case underscores the ongoing regulatory scrutiny around the marketing and capabilities of advanced driver-assistance systems, as states like California seek to ensure consumers have a clear understanding of what these technologies can and cannot do. Tesla's decision to discontinue the Autopilot branding and shift to a subscription model for its driver-assistance features reflects the company's efforts to comply with the state's requirements.
