Tesla Ordered to Revise Autopilot Claims Amid Regulatory Scrutiny

California regulators have mandated Tesla Inc. to alter its Autopilot and Full Self-Driving (FSD) marketing language within 90 days, following a ruling that deemed the terminology deceptive. The state's DMV imposed a dual 30-day suspension threat on Tesla's sales and manufacturing licenses, though the latter penalty is deferred to avoid production disruptions.

The enforcement coincides with Tesla's stock rally to a record $489.88, buoyed by investor enthusiasm for its Robotaxi ambitions. Shares have rebounded 21% year-to-date after a 36% Q1 plunge, pushing market capitalization to $1.63 trillion.

Regulators emphasized the need for clearer consumer disclosures about system limitations. Tesla had already rebranded its premium offering as 'Full Self-Driving (Supervised)' in 2022 after initial DMV objections.