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Tesla Sues California DMV to Overturn 'False Advertiser' Ruling on Autopilot and FSD

The company asks a California court to void a DMV finding it says jeopardizes its robotaxi strategy.

Overview

  • Tesla filed a Feb. 13 complaint in California Superior Court seeking to set aside a December 2025 administrative ruling that its Autopilot and Full Self-Driving marketing violated state law.
  • The DMV said on Feb. 17 that Tesla’s corrective actions removed the need for a 30-day suspension of its dealer and manufacturer licenses in California.
  • Tesla discontinued the Autopilot package in the U.S. and Canada, rebranded its system as “Full Self-Driving (Supervised),” and shifted FSD to a $99-per-month subscription, ending the prior $8,000 purchase option.
  • In its lawsuit, Tesla argues regulators never proved consumer confusion and contends the DMV long knew of the Autopilot and FSD branding, challenging the basis for the false-advertising label.
  • The case unfolds as legal and regulatory risks intensify, including a federal judge upholding a $243 million Autopilot crash verdict and an NHTSA probe into FSD-related incidents.