Tesla has ceased using the term 'Autopilot' in its California vehicle marketing and rebranded driver assistance features, complying with a California Department of Motor Vehicles (DMV) order and avoiding a 30-day suspension of its dealer license. The changes stem from a years-long dispute over misleading names for its Level 2 systems, which require constant human supervision. DMV Director Steve Gordon commended Tesla for protecting consumers.
On February 19, 2026, the California DMV confirmed Tesla's compliance with a December 2025 directive to stop using 'Autopilot' in state marketing, averting the threatened suspension first proposed after a November 2025 administrative ruling.
The controversy began in May 2021 with Tesla's website claims that 'Autopilot' and 'Full Self-Driving Capability' enabled hands-free trips with 'no action required by the person in the driver’s seat.' The DMV filed accusations against Tesla's licenses in November 2023, arguing the branding misrepresented the systems' Level 2 capabilities. An administrative hearing ran from July 21 to 25, 2025, leading to a proposed decision on November 20, 2025, finding violations of truthful advertising laws. The DMV adopted the findings on December 16, 2025, stayed the manufacturer license suspension, and gave Tesla 60-90 days to correct the 'Autopilot' usage.
Tesla responded by eliminating 'Autopilot' from California marketing and appending '(Supervised)' to 'Full Self-Driving,' a clarification first introduced in September 2024. The changes extend nationwide: since January 23, 2026, Tesla phased out Basic Autopilot as a standard feature on new U.S. and Canadian vehicles, replacing it with 'Traffic Aware Cruise Control.' Steering assistance now requires a subscription to 'Full Self-Driving (Supervised),' priced at $99 monthly. California accounts for about 30% of Tesla's U.S. sales.
'Tesla successfully took the required action to stop using the term "Autopilot" in the marketing of its vehicles in California,' the DMV stated. Director Steve Gordon added, 'The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.' Tesla noted the order involved no customer complaints and confirmed uninterrupted sales. CEO Elon Musk promoted the technology on X, posting, 'Try Tesla self-driving, it's awesome!'
