Tesla’s battle with the California Department of Motor Vehicles isn’t over after all

Published: (February 23, 2026 at 07:36 PM EST)
2 min read
Source: TechCrunch

Source: TechCrunch

Background

Tesla has filed a lawsuit against the California Department of Motor Vehicles (DMV) to overturn a ruling that the agency said the automaker used deceptive marketing to overstate the automated driving capabilities of its vehicles, violating state law.

Lawsuit Details

The lawsuit revives an issue that seemed resolved last week when the DMV announced it would not suspend Tesla’s sales and manufacturing licenses for 30 days after the company complied with the ruling and stopped using the term “Autopilot” in its California marketing materials. CNBC was the first to report the lawsuit: Tesla sues California DMV to reverse false advertising ruling on FSD.

DMV Response

An administrative law judge had agreed with the DMV’s request to suspend Tesla’s licenses for 30 days as a penalty. Instead of enforcing the suspension, the regulator gave Tesla 60 days to come into compliance, which the company did.

Tesla’s Actions

Tesla not only stopped using the term “Autopilot”; in January it discontinued Autopilot altogether in the U.S. and Canada: Tesla discontinues Autopilot in bid to boost adoption of its Full Self‑Driving software. The recent lawsuit may indicate the company is reconsidering that decision and seeking a way to reintroduce the branding.

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