California Regulator Allows Tesla to Continue Operations After Marketing Adjustments

On February 17 (Reuters) - Tesla has successfully averted a potential 30-day suspension of its dealer and manufacturer licenses in California. This follows the company's decision to cease using the term 'autopilot' in its vehicle marketing within the state, according to a statement from a regulatory body on Tuesday. The California Department of Motor Vehicles (DMV) has granted Tesla some reprieve amid declining demand faced by the electric vehicle industry after the expiration of vital tax credits that previously stimulated sales. CEO Elon Musk has shifted the company’s strategy towards developing robotaxis equipped with self-driving technology and humanoid robots. In 2022, the DMV had accused Tesla of misleading consumers through the use of the terms 'autopilot' and 'Full Self-Driving' (FSD) to describe their advanced driver-assistance features. The focus of the regulator has now shifted to 'autopilot' following Tesla's revision of 'Full Self-Driving' to emphasize the necessity for driver supervision. The DMV has postponed an order for the suspension of Tesla sales in California, its largest market in the U.S., allowing the company additional time to respond to the allegations. 'Autopilot' provides Tesla vehicles with capabilities such as acceleration, braking, and lane-keeping on highways, while 'Full Self-Driving' enables lane changes and traffic signal responses on city streets. (Reporting by Natalia Bueno Rebolledo in Mexico City; Editing by Sherry Jacob-Phillips)