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Business & Finance

Tesla Sues California Over “Autopilot” and “Full Self-Driving” Advertising Claims

adminBy adminFebruary 25, 2026
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Tesla Sues California Over “Autopilot” and “Full Self-Driving” Advertising Claims

Tesla has launched a lawsuit against California’s Department of Motor Vehicles (DMV). The automaker is challenging regulations concerning its advanced driver-assistance systems. These include “Autopilot” and “Full Self-Driving” (FSD) features. Tesla claims the DMV’s rules violate its free speech rights. This legal action targets the state’s oversight of automotive technology marketing.

California DMV’s Stance on Advertising

The California DMV previously accused Tesla of false advertising. It stated that the names “Autopilot” and “Full Self-Driving” mislead consumers. The DMV believes these terms suggest cars can operate autonomously. However, Tesla’s vehicles are not fully self-driving. They require active driver supervision at all times. The DMV’s regulations could lead to penalties. These include suspending or revoking Tesla’s manufacturer and dealer licenses in California.

Tesla’s Legal Argument

Tesla’s lawsuit argues against these administrative actions. The company asserts its disclaimers are clear. These disclaimers state that its systems demand driver attention. Therefore, Tesla believes its advertising is not misleading. The lawsuit contends that regulating these names infringes upon Tesla’s First Amendment rights. The company seeks to prevent the DMV from enforcing its advertising rules.

Understanding Tesla’s Driving Systems

Tesla’s “Autopilot” provides basic driver assistance. This includes features like adaptive cruise control and lane keeping. Meanwhile, “Full Self-Driving” (FSD) is a premium upgrade. It costs $12,000 or a $199 monthly subscription. FSD offers more advanced functions. These include automatic lane changes and navigating city streets. Despite their names, both systems are classified as Level 2 automation. This means a human driver must remain engaged and ready to intervene. They are not truly autonomous. Tesla vehicles cannot drive themselves without human input.

Broader Scrutiny and Past Incidents

This California lawsuit is not the first challenge for Tesla. The company has faced federal investigations. Agencies like the National Highway Traffic Safety Administration (NHTSA) have reviewed Tesla’s systems. The Department of Justice (DOJ) also launched an inquiry. These investigations focus on safety concerns and marketing practices. Furthermore, Tesla has faced civil lawsuits. One wrongful death case related to Autopilot was recently settled. Critics also note that CEO Elon Musk has sometimes overstated the technology’s capabilities.

Impact on Tesla in California

The outcome of this lawsuit is significant. California is a crucial market for Tesla. A loss could impact the company’s ability to operate there. It may also set a precedent for other states. The case highlights ongoing debates about autonomous vehicle technology. It also touches on consumer protection and free speech in advertising. The legal battle continues in California state court.

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