Tesla avoids suspension by California regulator after corrective marketing changes

A Tesla Model 3 vehicle drives using FSD (Full Self-Driving) in Encinitas, California, the US, October 18 2023. Picture:  REUTERS/MIKE BLAKE
“Autopilot” enables Tesla vehicles to accelerate, brake and remain within their lanes on highways.

Tesla will avoid a 30-day suspension of its dealer and manufacturer licences in California after the US electric vehicle maker stopped using the term “autopilot” in marketing its vehicles in the state, a regulator said on Tuesday.

The reprieve from the California department of motor vehicles (DMV) comes as Tesla and other EV makers grapple with a plunge in demand following the expiration of key tax credits that had boosted sales.

Tesla CEO Elon Musk has switched the company’s focus toward robotaxis equipped with self-driving technology and humanoid robots.

In 2022 the DMV accused Tesla of misleading consumers by using “autopilot” and “full self-driving” (FSD) for its advanced driver-assistance features.

The DMV narrowed its focus in December to the term “autopilot” as Tesla revised its use of the term “full self-driving” to clarify that driver supervision is required.

The regulator had deferred an order to suspend Tesla sales in California, its biggest US market, giving the EV maker additional time to address the allegations.

“Autopilot” enables Tesla vehicles to accelerate, brake and remain within their lanes on highways. “Full self-driving” allows vehicles to change lanes and respond to traffic signals on city streets.

Reuters


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