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

SelfRugger

2026-03-06 23:38:20

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

Kirsten Korosec

Tue, February 24, 2026 at 9:36 AM GMT+9 1 min read

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Tesla has filed a lawsuit against the California Department of Motor Vehicles in an attempt to overturn an agency ruling. The state DMV ruled that Tesla used deceptive marketing to overstate the automated driving capabilities of its vehicles, thereby violating state law.

The lawsuit reignites an issue that appeared to be resolved last week when the DMV said it would not suspend Tesla’s sales and manufacturing licenses for 30 days. This was because the EV maker complied with the ruling and stopped using the term “Autopilot” in its California marketing materials. CNBC was first to report the lawsuit.

The DMV could have taken action against Tesla. It chose not to even though an administrative law judge agreed with the DMV’s request to suspend Tesla’s licenses for 30 days as a penalty. Instead of pulling its licenses, the state regulator gave Tesla 60 days to comply.

And Tesla did, although in the most extreme ways. Tesla didn’t just stop using the term Autopilot; in January it discontinued Autopilot altogether in the U.S. and Canada. Perhaps it regrets that decision and is looking for a way to bring it back.

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