Tesla drops 'Autopilot' branding for its EVs in California

The California Department of Motor Vehicles confirmed on February 17, 2026, that Tesla has taken the required "corrective action" to amend its marketing language, as reported by Engadget. The DMV’s director, Steve Gordon, stated, "The department is pleased that Tesla took the required action to remain in compliance with the State of California's consumer protections," according to The Register.

This action stems from a December 2025 ruling by a California administrative law judge. The judge found that Tesla had disseminated misleading advertisements, a complaint originally filed by the DMV in 2022. The core of the issue, as detailed in the sources, was Tesla’s use of the labels “Autopilot” and “Full Self-Driving Capability” alongside a specific claim: that “the system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.” The California DMV explicitly stated that vehicles equipped with these Advanced Driver Assistance Systems (ADAS) “could not at the time of those advertisements, and cannot now, operate as autonomous vehicles.”

The judge’s initial recommendation was a 30-day suspension of Tesla’s manufacturer and dealer licenses within the state. However, the DMV opted to give the automaker a 60-day window, from December 16, 2025, to remove all untrue or misleading language from its marketing materials. Tesla’s compliance by the deadline has averted the license suspension.

The significance of avoiding this penalty is substantial from a business perspective. As noted by Engadget, California represents a critical market for Tesla, accounting for nearly a third of its sales in the United States. A 30-day halt to sales and manufacturing operations in the state would have had a pronounced financial impact on the company.

Prior to the broader rebranding order, Tesla had already taken steps to clarify the capabilities of its “Full Self-Driving” (FSD) package, modifying its language to explicitly state that active driver supervision is required. The recent corrective action extends this clarification to the “Autopilot” branding as well, removing the terms entirely from its consumer-facing marketing for California. The technical functionality of the systems, which are classified as Level 2 driver-assistance systems requiring constant human oversight, remains unchanged.

The DMV’s actions highlight a continuing regulatory focus on the precise language used to market automated driving systems. The case specifically targeted marketing claims made from May 2021 onward, indicating a sustained period of scrutiny. The resolution of this case does not preclude further regulatory action from other state or federal agencies also examining Tesla’s driver-assistance systems and their marketing.