>Why is Tesla “autopilot” still allowed on Californian roads?

Because Tesla suckered some idiots to take the blame if for example the car will instantly change direction and throw you of a bridge or in from of a truck, Tesla is saying that their customers are supposed to be ready for this cases .

For now only some Tesla alpha testers suckers got killed and no innocent person, but when an innocent will be killed I am waiting to see if the driver and hist lawyer will accept the blame or will fight the ToS claims.