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

Source: techcrunch
Author: Kirsten Korosec
Published: 2/24/2026
To read the full content, please visit the original article.
Read original articleTesla has filed a lawsuit against the California Department of Motor Vehicles (DMV) challenging the agency’s ruling that Tesla engaged in deceptive marketing by overstating the automated driving capabilities of its vehicles. The DMV had determined that Tesla’s use of the term “Autopilot” violated state law, leading to a proposed 30-day suspension of Tesla’s sales and manufacturing licenses. Although an administrative law judge supported the DMV’s penalty request, the agency ultimately opted not to suspend Tesla’s licenses immediately, instead granting the company 60 days to comply with the ruling.
In response, Tesla ceased using the term “Autopilot” not only in California marketing materials but also across the U.S. and Canada starting in January. This drastic step appeared to resolve the issue temporarily, but Tesla’s recent lawsuit indicates the dispute is far from over. The company may be seeking to reinstate the “Autopilot” branding or challenge the DMV’s authority to restrict its marketing language, signaling ongoing tensions between Tesla and California
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robotautonomous-vehiclesTeslaautomated-drivingelectric-vehiclesautomotive-technologyregulatory-compliance