Tesla Avoids CA Sales Ban on FSD Marketing

• Tesla's Autopilot is a basic advanced driver-assistance system (ADAS) that provides features such as traffic-aware cruise control and autosteer functionality[1][4] • Full Self-Driving (Supervised) is Tesla's more capable driver-assistance software that requires active driver supervision and attention at all times[2][3] • The DMV's core finding: Tesla vehicles equipped with these systems were not autonomous when marketed and remain non-autonomous today, contradicting marketing language that implied full automation[4] • Tesla's rebranding strategy emphasizes the 'Supervised' designation to clarify that driver intervention is mandatory, directly addressing regulatory concerns about misleading capability descriptions[2][3] • New Tesla vehicles in the U.S. and Canada now come standard with traffic-aware cruise control, with advanced features like autosteer available only through paid Full Self-Driving software subscriptions[4]

The regulatory settlement establishes a precedent for how autonomous vehicle marketing must be framed in California, potentially influencing industry-wide standards for ADAS terminology and consumer disclosure[5]. Tesla's shift from hardware-centric sales to software-subscription revenue models underscores the EV industry's transition toward profitability through feature-based services rather than vehicle volume alone[5]. The company's robotaxi commercialization timeline—with Cybercab volume production expected in April 2026—depends on sustained regulatory compliance and consumer trust in its autonomous driving claims[4]. Future regulatory scrutiny may intensify as Tesla scales robotaxi deployment, requiring transparent communication about system limitations and driver responsibilities[1][5].