Tesla sales in California will not be suspended after regulators ruled on Tuesday that the company had stopped misleading customers about its driver-assistance features.
In December last year, the California Department of Motor Vehicles determined that Tesla violated state law by exaggerating the capabilities of its “self-driving” and “full self-driving” technologies.
The technology cannot be used without the presence of an alert human driver.
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The DMV has threatened to suspend Tesla’s dealer and manufacturer licenses in the state for 30 days if it does not correct its marketing practices.
Read more: California DMV threatens to stop Tesla sales due to false advertising of “self-driving”
Tesla has since stopped using the term “self-driving” in California and added “supervised” to describe its fully self-driving mode.
“The department is pleased that Tesla has taken the necessary actions to continue to comply with California’s consumer protection regulations,” DMV Director Steve Gordon said in a statement.
Chief Executive Officer Elon Musk has long touted the capabilities of Tesla’s driver-assist features, claiming for more than a decade that Tesla can drive itself as safely as a human.
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Last year, a Miami jury found Tesla partially responsible for fatal crashes caused by its Autopilot system and ordered the company to pay $240 million to victims.
Read more: Fatal crash and Musk’s hyperbole: Two lawsuits over Tesla’s self-driving technology
Additionally, Tesla shareholders sued Musk last year, claiming he made “materially false” claims about Tesla’s robotaxi operations in Austin, Texas.
Regulators have given Tesla 90 days from December to adjust its advertising and stop convincing consumers that Autopilot and Full Self-Driving can be used safely without an attentive person.
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This story originally appeared in the Los Angeles Times.
