Tesla sues Calif. DMV after agency called its autopilot deceptive marketing

Source: Mashable Tech

Background

Elon Musk’s Tesla is suing the California Department of Motor Vehicles (DMV) to regain the right to use the term “autopilot” in its advertising. The lawsuit, filed on February 13, alleges that the DMV “wrongfully and baselessly” labeled Tesla a “false advertiser” and failed to prove that customers were led to believe the vehicles could operate without human oversight.

Legal Action

• Case filing: February 13, 2026 – Tesla filed a complaint seeking to overturn the DMV’s ruling that its marketing was deceptive.
• Claim: The DMV’s decision was based on a judgment that Tesla’s “Autopilot” and “Full Self‑Driving Capability” (FSD) do not meet the autonomous‑driving criteria set by the National Highway Traffic Safety Administration (NHTSA).

Court Ruling

Last year, an Administrative Law Judge for California’s Office of Administrative Hearings ruled that Tesla had engaged in deceptive marketing by describing its driver‑assistance systems as “Autopilot” modes. The decision highlighted:

• Tesla’s systems are classified as Level 2 automation under NHTSA’s Levels of Automation, whereas “self‑driving” claims require at least Level 3.
• The ruling stated that using such terms misled drivers and posed a consumer risk.

The ruling also noted Tesla’s partial liability in a fatal autopilot‑related crash in Florida.

Impact of the Ruling

• Effective January 15, the ruling imposed a 30‑day business suspension across California unless Tesla ceased using the term within 60 days or modified its systems.
• In response, Tesla posted a tongue‑in‑cheek social media message and claimed sales would not be affected.
• In January, Tesla discontinued Basic Autopilot in the U.S., replacing it with a “standard traffic awareness mode” and an optional upgrade to “Full Self‑Driving (Supervised).”

DMV’s Position

A DMV representative told CNBC:

“An Administrative Law Judge found that Tesla broke state law by misleading consumers with the term ‘autopilot.’ Tesla agreed to stop this practice, and now they’re challenging it anyway. DMV is committed to protecting the traveling public and will defend the Administrative Law Judge’s findings and decision in court.”

Current Status

After the DMV announced that Tesla had met its obligations and would avoid a license suspension, Tesla has escalated the dispute by filing the lawsuit to overturn the deceptive‑marketing ruling.