California DMV Clears Tesla of License Suspension

The California Department of Motor Vehicles announced Tuesday that it will not suspend Tesla's sales and manufacturing licenses for 30 days, allowing the electric vehicle maker to continue operations uninterrupted in the state. The decision resolves a nearly three-year investigation into allegations that Tesla's marketing of its driver assistance systems misled consumers about their capabilities.

The case originated in November 2023, when the DMV accused Tesla of violating state consumer protection laws through its use of the terms "Autopilot" for its basic advanced driver assistance system and "Full Self-Driving" for its more advanced version. Regulators contended that these names overstated the technologies' autonomy, potentially leading drivers to believe the vehicles could operate without supervision. California, Tesla's largest U.S. market, initiated the probe after reports of confusion among buyers regarding the systems' limitations.

In response to the allegations, Tesla modified its terminology for the advanced system, renaming it "Full Self-Driving Supervised" to emphasize that driver monitoring remains essential. The company retained "Autopilot" in its promotions,...