Tesla just pulled the plug on its iconic "Autopilot" branding in California, marking a significant retreat after state regulators found the company's marketing violated consumer protection laws. The California Department of Motor Vehicles announced the corrective action this week, saying Tesla's decision avoids a 30-day sales suspension that would've shut down the EV maker's largest U.S. market. It's a rare admission from Elon Musk's company, which has defended its autonomous driving terminology for years despite mounting regulatory pressure and safety concerns.
Tesla is quietly rebranding its driver assistance features in California, ditching the "Autopilot" name that's been synonymous with the company's autonomous ambitions since 2014. The shift comes after the California Department of Motor Vehicles concluded in December that Tesla's marketing materials violated state law by misleading customers into thinking their vehicles could drive themselves.
The regulatory crackdown carries serious financial stakes. California represents Tesla's single largest state market in the U.S., accounting for an estimated 11% of the company's global vehicle deliveries. A 30-day sales suspension would've cost Tesla hundreds of millions in revenue and potentially pushed buyers toward competitors like Rivian and legacy automakers racing to capture the premium EV segment.
According to the DMV's original complaint, the issue centers on written marketing materials for Advanced Driver Assistance Systems that Tesla began publishing in May 2021. Those materials allegedly created false expectations about the autonomous capabilities of both Autopilot and the company's premium "Full Self-Driving" package, which despite its name still requires constant driver supervision.
