Tesla removes Autopilot branding in California after DMV order

Tesla removes Autopilot from marketing

Tesla has officially scrubbed the term Autopilot from its California marketing materials and modified its Full Self-Driving branding to include the word Supervised. The company made these changes to comply with a California Department of Motor Vehicles (DMV) order regarding deceptive advertising practices.

The California DMV confirmed Tesla's "corrective action" on February 17, 2026. This compliance follows a 60-day ultimatum issued by the agency on December 16, 2025. Tesla faced a 30-day suspension of its manufacturing and dealer licenses if it failed to update its language.

DMV Director Steve Gordon stated the department is pleased that Tesla took the required action. The agency remains committed to safety throughout California’s roadways and communities. Tesla’s website now reflects these changes, prominently labeling its premium software package as Full Self-Driving (Supervised).

DMV targets deceptive autonomy claims

The regulatory conflict centers on how Tesla described its advanced driver assistance systems (ADAS) to consumers. The DMV argued that Tesla’s marketing suggested its vehicles were capable of autonomous operation when they were not. Legal filings cited marketing materials dating back to May 2021 that claimed the system could conduct trips with no action required by the person in the driver's seat.

State regulators asserted that vehicles equipped with these features could not operate as autonomous vehicles at the time of the ads. They further noted that the hardware and software still require constant human intervention today. Under California law, companies cannot use language that implies a vehicle is autonomous if it still requires a human driver to monitor the road.

The DMV's investigation focused on two specific software suites:

• Autopilot: A suite of driver assistance features that includes traffic-aware cruise control and autosteer.
• Full Self-Driving (FSD): An upgraded package that adds city street driving, traffic light recognition, and automatic lane changes.
• Enhanced Autopilot: A mid-tier option that included Navigate on Autopilot and Auto Lane Change.

Tesla avoids license suspension

An administrative law judge originally proposed a 30-day suspension of Tesla’s California manufacturing and dealer licenses. Such a penalty would have halted Tesla’s ability to sell or produce vehicles within its largest domestic market. California represents a significant portion of Tesla's global revenue and serves as its primary hub for engineering and design.

A later review by the DMV granted Elon Musk’s company a 60-day window to rectify its branding. By removing the "Autopilot" moniker and adding "Supervised" to FSD, Tesla avoided the suspension. The agency confirmed that Tesla is now in compliance with the state's consumer protection laws.

The "Supervised" label serves as a legal shield for the company. It reinforces the requirement that drivers must keep their hands on the wheel and eyes on the road. This change aligns Tesla's public-facing language with the technical reality of its Level 2 driver assistance system.

Fremont factory shifts to robotics

The marketing overhaul arrives as Tesla transitions its manufacturing strategy in California. CEO Elon Musk recently announced that the Fremont facility will phase out production of the Model S and Model X. These flagship vehicles are due to be discontinued later this year as sales volumes for the aging platforms continue to decline.

Tesla plans to repurpose the Fremont assembly lines to manufacture Optimus robots. These humanoid robots represent a pivot in Tesla's business model from pure automotive manufacturing to artificial intelligence and robotics. Because Optimus is not a road-going vehicle, it will likely fall outside the California DMV’s regulatory purview.

This shift allows Tesla to focus its automotive efforts on the high-volume Model 3 and Model Y platforms. It also reduces the company's exposure to California's strict automotive advertising regulations. The Fremont factory remains a critical asset for Tesla, even as it moves away from its original luxury vehicle lineup.

National implications for Tesla branding

The California ruling sets a precedent that could affect Tesla’s marketing in other states and regions. Regulators in Europe and other U.S. states have previously raised concerns about the "Autopilot" name. The DMV’s successful enforcement action provides a blueprint for other agencies seeking to limit how carmakers describe driver assistance features.

Tesla has not confirmed if it will apply these marketing changes globally. Currently, the "Supervised" branding is most visible on the United States configurator and in software release notes. Consumer advocacy groups have long called for a standardized naming convention for ADAS to prevent driver confusion.

The company’s decision to comply rather than fight the DMV in court marks a departure from its usual litigious stance. Facing a total shutdown of California operations likely forced Tesla's hand. The company’s current marketing reflects a new era of regulatory oversight for Elon Musk and his engineering teams.

Technical reality vs marketing goals

Tesla’s software relies on a vision-only approach using cameras and neural networks. Unlike competitors like Waymo or Cruise, Tesla does not use Lidar or high-definition mapping for its consumer vehicles. This technical choice has made achieving true Level 4 or 5 autonomy difficult, as the system remains prone to "phantom braking" and edge-case errors.

The DMV's enforcement highlights the gap between Tesla’s long-term goals and its current product capabilities. While Musk has promised a "robotaxi" future for years, the software remains a Level 2 system. This means the driver is legally responsible for the vehicle's actions at all times.

By adopting the Full Self-Driving (Supervised) name, Tesla acknowledges this limitation. The company continues to push software updates to its fleet, but the "Supervised" tag serves as a constant reminder of the system's flaws. The following requirements now appear more prominently in Tesla's documentation:

• Drivers must remain attentive and ready to take over at any moment.
• The system does not make the vehicle autonomous.
• Hands must remain on the steering wheel or the system will disengage.
• Drivers are responsible for all traffic violations and accidents.

Tesla’s compliance ends a multi-year standoff with California regulators. The company must now navigate a future where its branding is tethered to the reality of its software’s performance. As the Model S and Model X exit the stage, Tesla’s focus shifts to proving its "Supervised" software can eventually live up to its original, unadorned name.