Uber has halted its self-driving car trials in San Francisco and agreed to work with state regulators on obtaining proper permits for 16 test cars. The move amounts to a retreat by Uber, which had last week argued that it didn’t need to obtain the permits.

That response sparked a demand from the state that the cars be pulled off the roads immediately and a threat of legal action if they were not.

Uber had argued its cars didn’t require autonomous car permits because they didn’t meet the law’s definition of being autonomous. It said the cars require a driver in the front seat at all times, and so are not autonomous but more akin to Tesla cars with advanced auto-pilot software.

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