Tesla has managed to avert a 30-day suspension of its dealer and manufacturer licenses in California by discontinuing the use of the term 'autopilot' in its marketing strategies within the state. This decision comes against the backdrop of previous concerns raised by state regulators regarding the misleading nature of Tesla's representation of its driving technology. Now, Tesla has adopted the term 'supervised' to describe its full self-driving technology, a move aimed at aligning its marketing practices with regulatory expectations.

The California Department of Motor Vehicles (DMV) confirmed that this action by Tesla has led to a more accurate portrayal of the capabilities of its vehicles, thereby satisfying regulatory concerns about consumer safety and protections. The DMV had previously indicated that any misrepresentation could lead to significant penalties, including the suspension of sales licenses, which affected the company's largest market. The resolution marks a significant shift in Tesla's marketing approach, responding to both regulatory scrutiny and public concerns about vehicle safety.

CEO Elon Musk's company faced legal challenges when an administrative law judge found in 2022 that Tesla had misled consumers by using terms like 'autopilot' and 'full self-driving' in a way that suggested their cars could drive themselves. By adjusting its terminology, Tesla has not only circumvented immediate sales penalties but also reestablished some level of trust with regulators in California, crucial for maintaining its market dominance in the electric vehicle sector.