It's even on their official sites demo video! As shared in another comment https://www.tesla.com/autopilot
On the Model S page one feature is called "Autopilot: Future of Driving".
The Autopilot page then leads with a still shot of a driver not touching the wheel. If you press play it says "He is not doing anything. The car is driving itself".
Sure, about 2/3 page lengths further down, hidden in the middle of a paragraph, it caveats it. But unless you read the fine-print, it's advertising hands free driving.
What regulation needs to catch up?