Tesla Drops 'Autopilot' Term, Avoids 30-Day California License Suspension
Tesla Drops 'Autopilot' Term, Avoids 30-Day California License Suspension
Badar ShaikhSun, February 22, 2026 at 1:45 PM UTC
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The California Department of Motor Vehicles (DMV) has confirmed that Tesla Inc. (NASDAQ:TSLA) has avoided a suspension of its license to manufacture and sell vehicles in the state after the automaker dropped the "Autopilot" term from its marketing activities.
Tesla Drops Autopilot
In an official statement released by the DMV on Tuesday, the DMV confirmed that Tesla had dropped the "Autopilot" term for its Advanced Driver Assistance Systems (ADAS). By doing so, the automaker has avoided "having its dealer and manufacturer licenses suspended by DMV for 30 days," the agency said in the statement.
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DMV Director Steve Gordon hailed the decision, saying that "The department [DMV] is pleased that Tesla took the required action" to remain in compliance with California's consumer protection laws.
DMV Lawsuit
The news comes following the DMV filing a lawsuit against the automaker at a court in California back in July last year, seeking a 30-day suspension of Tesla's sales and manufacturing activities in the state after it had launched a probe into the company in 2021.
The agency alleged that Tesla had misled consumers about the capabilities of its Autopilot and Full Self-Driving systems. The agency, in an official inquiry in 2022, asked Tesla to respond to "creating incorrect perceptions" about the systems. While the court had ruled in the DMV’s favor, the agency stayed any suspensions, instead giving the automaker 90 days to adopt the necessary changes.
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Tesla's Robotaxi Crashes, FSD Problems
Tesla has also come under fire after it reported 5 additional crashes of its Robotaxis in Austin last month, taking the total reported incidents involving its cabs to 14 so far. Investor Ross Gerber of Gerber Kawasaki raised questions about the FSD system, suggesting that the Elon Musk-led company should adopt hardware changes.
A Tesla owner has also flagged multiple instances of the company's FSD system driving onto a boat ramp on a lake, almost driving into the lake before the owner intervened. The owner shared video footage of the incidents, which has sparked concerns about the capabilities of the system.
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