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Tesla Sues California DMV Over Autopilot Ruling

Tesla Sues California DMV Over Autopilot Ruling

by Tekmono Editorial Team
24/02/2026
in News
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Tesla has taken legal action against the California Department of Motor Vehicles (DMV) over a ruling that the company used deceptive marketing to overstate its vehicles’ automated driving capabilities.

The California DMV had previously determined that Tesla violated state law with its marketing of driver-assistance systems, according to CNBC. The lawsuit reopens an issue that appeared settled last week when the DMV stated it would not suspend Tesla’s sales and manufacturing licenses for 30 days.

This decision followed Tesla’s compliance with the ruling by stopping the use of the term “Autopilot” in its California marketing materials. An administrative law judge had previously agreed with the DMV’s request to suspend Tesla’s licenses for 30 days as a penalty. Instead of immediate suspension, the regulator gave Tesla 60 days to comply.

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Tesla complied by not only stopping the use of the term “Autopilot” but also discontinuing the Autopilot product altogether in the U.S. and Canada in January. The lawsuit suggests Tesla may regret discontinuing the product and could be seeking a way to bring it back.

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