Waymo, the self-driving subsidiary of Google's parent company, stopped using the term "self-driving" in 2021, saying that misuse by other automakers was giving the public a false impression of its capabilities. Waymo began referring to its robotaxis as "fully autonomous." Waymo, which operates robotaxis in the Phoenix area, does not need a human in the driver's seat to ensure safe operation.

The California DMV's actions are officially limited to the state, but the impact could be much greater. It's routine for California to lead on regulations and for other states to follow, such as vehicle emission standards. California's large population makes tailoring vehicles just for that state too expensive for most automakers.

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"Once you talk about one state investigating, you could talk about 50 states potentially investigating," said Smith, adding that it will become easier politically and factually. "They're not putting their necks out."

Tesla did not respond to a request for comment.

Waymo, the self-driving subsidiary of Google's parent company, stopped using the term "self-driving" in 2021, saying that misuse by other automakers was giving the public a false impression of its capabilities. Waymo began referring to its robotaxis as "fully autonomous." Waymo, which operates robotaxis in the Phoenix area, does not need a human in the driver's seat to ensure safe operation.

The California DMV's actions are officially limited to the state, but the impact could be much greater. It's routine for California to lead on regulations and for other states to follow, such as vehicle emission standards. California's large population makes tailoring vehicles just for that state too expensive for most automakers.

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"Once you talk about one state investigating, you could talk about 50 states potentially investigating," said Smith, adding that it will become easier politically and factually. "They're not putting their necks out."

Tesla did not respond to a request for comment.