Tesla has successfully overcome a significant regulatory obstacle in California that threatened its ability to sell and manufacture cars in the state. The issue stemmed from the California Department of Motor Vehicles (DMV) finding in 2025 that Tesla’s use of the terms “Autopilot” and “Full Self-Driving” could be misleading under state law.
To address the concerns raised by the DMV, Tesla swiftly made changes to its marketing in California, moving away from the “Autopilot” branding and emphasizing the need for active driver supervision at all times. This proactive action by Tesla averted a potential 30-day suspension of its dealer and manufacturer licenses.
The crux of the dispute centered around whether the product names accurately reflected the capabilities of Tesla vehicles. The DMV contended that previous descriptions implied a level of autonomy that the cars did not possess. Since then, Tesla has updated its language, notably rebranding its flagship software as “Full Self-Driving (Supervised)” to clearly indicate the requirement for human oversight.
Director of the DMV, Steve Gordon, expressed satisfaction with Tesla’s efforts to comply with consumer protection laws in the state. The situation highlighted the challenge of regulating rapidly advancing technology, with Tesla striking a balance between innovation and regulatory compliance.
This resolution holds particular significance for Tesla’s operations in 2026, as California serves as a key market for the Model 3, Model Y, and upcoming Cybercab. By resolving the naming dispute, Tesla can focus on expanding its AI and robotics initiatives without interruption.
Despite the lengthy legal process, the outcome benefits both the state and Tesla, providing clarity for consumers and ensuring the continued sale of cutting-edge vehicles in Silicon Valley. The “supervised” era is firmly established, and Tesla can forge ahead with its groundbreaking developments.
In other news within the electric vehicle industry, Ford has unveiled plans for a $30,000 electric pickup inspired by Tesla’s Cybertruck technology. Additionally, the Tesla Model 3 has been named the best electric car for 2026 by Edmunds, solidifying Tesla’s position as a leader in the EV market. Furthermore, Tesla has achieved a significant milestone with over 8 billion miles driven by owners using Full Self-Driving (FSD) Supervised software, demonstrating the progress in autonomous driving technology.
As Tesla continues to innovate and navigate regulatory challenges, the company remains at the forefront of the electric vehicle revolution, setting the pace for the industry’s future.