Tesla's usage of the term 'Autopilot' in its advertising came under scrutiny from California regulators, leading to a cessation of the term's use after a sales ban became imminent. For years, the California Department of Motor Vehicles (DMV) had accused the electric vehicle manufacturer of misleading consumers with terms like Autopilot and Full Self-Driving (FSD) that could imply full autonomy while drivers still bore responsibility. The recent focus on the Autopilot name was triggered when the DMV deemed it gave consumers a misleading impression of Tesla cars operating independently.

The situation escalated to the point where the DMV imposed a sales ban on Tesla effective mid-December of last year, which was set to last for 30 days and would have come into effect 90 days after its imposition unless Tesla complied with regulatory demands. This move reflected ongoing tensions between the rapidly advancing autonomous vehicle industry and the regulatory bodies tasked with ensuring consumer safety and accurate information. Tesla preemptively adjusted its marketing strategy in response to protect its sales channels.

This development highlights the critical balance regulators are attempting to strike in fostering innovation in autonomous technology while also safeguarding the general public's understanding and expectations of such technologies. As companies like Tesla expand their advertising and claims about autonomous capabilities, they must navigate strict regulatory environments to avoid misleading their customers, which can lead to severe consequences for both the company and public trust.