Tesla Stock Slips After-Hours: EV Maker Axes ‘Autopilot’ Branding To Avoid DMV License Suspension In California

• California regulators said Tesla is back in compliance after finding its past use of “Autopilot” and “Full Self-Driving Capability” misleading.
• The state DMV said Tesla's vehicles were not autonomous and ordered the company to revise its marketing language.
• Tesla rolled out its first Cybercab robotaxi off its Texas production line on Tuesday, hinting at a sub-$30,000 price tag before 2027.

Tesla Inc.’s stock dipped 0.4% in extended trading on Tuesday amid the EV maker’s move to drop the “Autopilot” label in California to avoid a DMV license suspension.

TSLA stock fell nearly 2% in Tuesday’s regular session.

California DMV Says Tesla Is Back In Compliance

The California Department of Motor Vehicles (DMV) said Tesla has stopped using the term “Autopilot” in marketing its vehicles in California, a move regulators required after finding the language misleading.

“The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections,” DMV Director Steve Gordon said in a statement.

The decision follows a December ruling in a case where an administrative law judge found Tesla’s use of “Autopilot” to describe its advanced driver-assistance system violated state law. While the original ruling called for 30-day suspensions of Tesla’s licenses, the DMV reduced the penalty and instead gave the company 60 days to fix its marketing language.

Tesla’s Marketing Misleading?

Regulators said Tesla’s marketing materials, going back to 2021, used terms such as “Autopilot” and “Full Self-Driving Capability” alongside descriptions that could lead consumers to believe the vehicles were capable of driving themselves.

According to the DMV, Tesla vehicles equipped with these systems were not autonomous when the ads were published and are still not fully autonomous today. Based on those findings, the DMV moved in 2023 to pursue action against Tesla’s licenses. Tesla has since dropped the phrase “Full Self-Driving Capability” and now uses “Full Self-Driving (Supervised)” to emphasize that drivers must remain attentive at all times.

Autopilot Phased Out, FSD Takes Center Stage

The California action follows Tesla’s decision last month to discontinue its basic Autopilot system for new Model 3, Model Y and base Cybertruck purchases in the U.S. and Canada. New vehicles now come standard with traffic-aware cruise control, while features such as autosteer are available only through the company’s Full Self-Driving (FSD) software.

Tesla also plans to move FSD to a subscription-only model. CEO Elon Musk said the current $99-per-month price could rise as the software’s capabilities improve, even though the system still requires active driver supervision.

Autonomy Push Continues Under Watchful Eyes

The regulatory update comes as Tesla continues to press ahead with its autonomy ambitions. On Tuesday, the company rolled the first Cybercab robotaxi off its Texas production line, with volume production expected to begin in April, after CEO Elon Musk said on X that a sub-$30,000 price before 2027 is “gonna happen.” Tesla has also been running a limited robotaxi program in Austin using Model Y vehicles equipped with FSD.

At the same time, Tesla’s driver-assistance technology remains under scrutiny from U.S. safety regulators, with the National Highway Traffic Safety Administration (NHTSA) granting the company until next week to review potential traffic law violations involving vehicles equipped with FSD, as part of a probe initiated in October.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for TSLA was ‘bullish’ amid ‘low’ message volume.

One user expects Tesla’s stock to open at $416.45 and move higher on Wednesday.

Another bullish user said, “TSLA just had the 1st cybercab roll out of the production line. This is huge!!! This time around Elon is on target.. cybercab will definitely start April 2026.”

TSLA stock has declined 9% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on