The California Department of Motor Vehicles (DMV) seems to want Tesla to advertise its Autopilot and Full Self-Driving (FSD) features to consumers.
According to a report by the LA Times. the DMV isn’t too happy about Tesla’s use of the terms, Autopilot and FSD. And the state agency is also upset about Tesla’s description of how Navigating on Autopilot from home works.
According to the article, the California DMV thinks the following paragraph found on Tesla’s website was misleading.
“All you will need to do is get in and tell your car where to go. If you don’t say anything, your car will look at your calendar and take you there as the assumed destination. Your Tesla will figure out the optimal route, navigating urban streets, complex intersections, and freeways.”
Is this really misleading, though?
That particular paragraph is part of Tesla’s description of its Autopilot and FSD features. Having seen FSD in action for myself, I’ve seen it actually do this. I’ve ridden with friends who have FSD Beta and they would speak into the microphone and tell the car where to go. And the car would go there.
The only issue is that this technology is still in Beta and the driver needs to be very aware of their surroundings. This means paying attention to the road. And in some cases, I have seen my friends take over safely.
However, I’ve also witnessed FSD stop for cyclists and pedestrians which many human drivers all too often don’t do.
As someone who doesn’t own a car, I’ve been almost hit quite a few times. If it wasn’t for my paying attention to my surroundings, I’d probably have won a few lawsuits and hospital stays. Perople really don’t pay attention when behind the wheel.
The California DMV’s Solution: Making Tesla advertise or “educate consumers”
They seek to make Tesla add more disclaimers / training for users. Seems like a non-issue. Their main issue seems to be the Full Self-Driving name as Tesla doesn’t actually advertise. https://t.co/hole8WMSx0
— Whole Mars Catalog (@WholeMarsBlog) August 5, 2022
If the DMV gets its way, it could revoke Tesla’s licenses to make and sell EVs in the state. I don’t have to tell you how bad this would be for jobs.
The article noted that these “remedies” would probably be “softer.” A DMV spokesperson told the LA Times that it will ask that Tesla be required to advertise the capabilities of Autopilot and FSD to consumers.
“The DMV will ask that Tesla will be required to advertise to consumers and better educate Tesla drivers about the capabilities of its ‘Autopilot’ and ‘Full Self-Driving’ features, including cautionary warnings regarding the limitations of the features, and for other actions as appropriate given the violations.”
In essence, the DMV is trying to force Tesla to buy advertising for its products and services.
Bloomberg noted that Tesla has 15 days to respond to the DMV if it wants to dispute or defend itself. It should also be noted that Tesla is one of the state’s largest employers with over 45,000 employees.
California isn’t too fond of Tesla at all, it seems
California already lost Tesla headquarters following the drama from 2020. CA Assemblywoman Lorena S. Gonzales made it very clear that Elon Musk and Tesla, a leading job provider, weren’t welcome in the state.
Although Tesla didn’t close down its factories in California, the company relocated its headquarters to Austin following Elon Musk’s personal decision to move to the Texas capital.
Message received
— Elon Musk (@elonmusk) May 11, 2020
Personally, I don’t blame him for moving out of a state where government officials are openly hostile toward Elon Musk. I’d leave, too. And the move has proven to be very beneficial for both Tesla and Texas.
Following the relocation, Tesla seems to be doing very well and recently opened Giga Texas in April. Tesla has also been working closely with the Texas Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT).
Reducing the stress on the Texas grid would help Texans during the intense heat and winters. And it would encourage the largest oil-producing U.S. state to openly embrace renewables. Tesla being in Texas is a great thing for both as well as the South.
Tesla released the Full Self-Driving v14 ‘Lite’ suite to owners of Hardware 3 or AI3 vehicles today, adding several new features to the vehicles that were once believed to be capable of unsupervised self-driving.
Now, Tesla has released this modified suite to older Tesla vehicles, adding plenty of new features and capabilities.
Here are the full release notes for the suite:
- Distilled the intelligence from HW4 V14 into HW3. This allows HW3 to directly learn how to handle scenarios using HW4 V14 as a guide. This process unlocks the improvements that have been made to HW4 including Reinforcement Learning (RL) and offline models for HW3.
- Improved both proactive and reactive responsiveness across a wide variety of categories including navigation handling, merges and forks, pedestrian interactions, traffic lights, and vehicle cut-in scenarios.
- Improved general comfort in nominal scenarios through fewer false slowdowns, smoother steering and more consistent lane centering.
- Introduced parking, unparking, and reversing capabilities.
- Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, or at the Curbside.
- Speed Profiles are now available at all times, to further customize driving style preference.
These improvements, according to Tesla’s Head of AI, Ashok Elluswamy, help distill the driving behavior from AI4’s v14 series into both the camera and compute configurations of AI3.
Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released
He added:
“It includes destination options and speed profiles on city roads, but more importantly significantly improved safety. We hope you’ll enjoy it, once the build ships wide.”
FSD v14 Lite is now rolling out to AI3 early-access customers. Based on the feedback, will rollout to more customers over the next few weeks.
This build distills the driving behavior from AI4’s v14 series into both the camera and compute config of AI3. It includes destination…
— Ashok Elluswamy (@aelluswamy) June 29, 2026
Tesla will continue to roll out the v14 Lite suite more widely in the coming weeks, the company said.
Tesla has finally released its Full Self-Driving v14 ‘Lite’ suite for older cars that equip the Hardware 3 or AI 3 chip, which have not been able to handle the newest versions of the company’s driver assistance software.
Tesla officially started releasing the v14 Lite suite to owners in the Early Access Program last night. The company’s Head of AI, Ashok Elluswamy, said that the rollout will continue over the next few weeks. The build distills the driving behavior from AI4’s v14 series into both the camera and compute configurations of an AI3 car.
🚨 Tesla is releasing v14 Lite for AI3 owners who are in early-access
This will give AI3 cars the ability to experience new FSD features like parking preferences. https://t.co/pp6Q5FOKoz pic.twitter.com/tqexMB8SVy
— TESLARATI (@Teslarati) June 29, 2026
It also includes a variety of new features that were available to AI4 cars running v14, including:
- Start Self-Driving from Park
- Arrival and Parking Options
- Speed Profiles
The release is highly anticipated because those owners with AI3 vehicles were early adopters into the FSD platform and were promised that their cars would be capable of achieving Full Self-Driving.
However, Tesla CEO Elon Musk admitted during the company’s recent Q1 Earnings Call that these vehicles would not be capable of achieving unsupervised Full Self-Driving, which is what Tesla had originally said.
Owners were not pleased with this answer, or the idea that their commitment to buying the suite outright for thousands of dollars would not yield the ability to drive without operating the car. Tesla gave some solutions for this, including a discount on a new car, or an upgrade to an AI4 or AI5 self-driving computer and new, upgraded cameras.
Tesla owners do not seem pleased with these options, as they require giving the company more money.
Nevertheless, it is important to note that Tesla came through for owners here by releasing v14 Lite before the end of Q2, something it had promised owners during the previous Earnings Call. Tesla has had trouble keeping up with timelines, but this is a big achievement for the team.
Tesla released what analysts believe the company will report in terms of deliveries and energy deployments for Q2, but the figures seem to confirm a long-standing theory on the company’s vehicle division.
For years, Tesla was just looked at as a car company. Now that it has established itself as a powerhouse in energy, AI, and tech as a whole, the company is now less hellbent on achieving quarterly growth, on a sequential basis, at least from a major standpoint.
Tesla topped out its annual deliveries in 2023 at 1.81 million, and in the two years since, the company has reported a decrease in deliveries for the entire 12-month term both times.
With Tesla delivering 358,023 cars in Q1, a 6.3 percent increase over Q1 2025, but falling short of Wall Street expectations at 365,000-370,000 units, the narrative around vehicle deliveries and their importance continued to change earlier this year. Some might say it is convenient, but others might say it is the typical evolution of a company that continues to change over time.
For Q2, Tesla’s delivery consensus estimates sit at 406,024 units, analysts believe. They were surveyed from Daiwa, DB, Wedbush, Cowen, Canaccord, Baird, Wolfe, BMP Paribas, Goldman Sachs, RBC, Evercore ISI, Barclays, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPM, Needham & Co., HSBC, and William Blair.
Credit: Tesla
Tesla is also expected to report deployments of 13.8 GWh this quarter.
The change to Tesla’s overall narrative now leans less on vehicle deliveries and more on its other projects. Most notably, Tesla’s Robotaxi project has taken the priority over most of its other business ventures, and investors and the public are more concerned about the deployment of vehicles into the fleet, the operation of a driverless ride-hailing service, Cybercab production and operation, and expansion into new cities.
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
This big narrative switch happened when Tesla indicated it was looking at making transportation a service by launching a ride-hailing service that will operate using Tesla’s Full Self-Driving suite. Once unsupervised operation begins, Robotaxi could be a new way for people to get around, all without a driver in their car.
Instead, they will rely on the billions of miles Tesla has accumulated from its real-world fleet.
It is important to note that Tesla remains significant in the automotive sector, and deliveries must continue as they have for years. Tesla still has a strong automotive business and needs to execute further on all facets to keep its investors happy.
Tesla Full Self-Driving v14 ‘Lite’ Release Notes: new capabilities and features
Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released
