Tesla has initiated a lawsuit against the California Department of Motor Vehicles (DMV) to contest a ruling that concluded the automaker engaged in false advertising concerning its advanced driver-assistance systems, Autopilot and Full Self-Driving (FSD).
Legal Challenge Over Advertising Claims
The electric vehicle manufacturer’s legal action seeks to invalidate the agency’s determination that Tesla misled consumers regarding the capabilities of its Autopilot and FSD systems. This move comes after California’s Office of Administrative Hearings (OAH) found that Tesla’s earlier marketing of these features violated state law, according to a CNBC report.
While the California DMV decided against suspending Tesla’s operating license, citing the company’s subsequent updates to its marketing language for these systems, Tesla is pursuing a court order to overturn the agency’s core finding of false advertising.
Tesla’s Argument: No Consumer Confusion Proven
In its complaint filed on February 13, Tesla’s legal team asserted that the DMV “wrongfully and baselessly” classified the company as a “false advertiser” concerning its Autopilot and FSD systems. The lawsuit contends that state regulators failed to provide evidence demonstrating that consumers were actually deceived by Tesla’s claims about the systems’ functionalities.
According to Tesla’s filing, the DMV “never proved consumers in the state had been confused about whether its cars were safe to drive without a human at the wheel.”
Tesla’s attorneys further argued that it was impossible for customers to purchase a vehicle equipped with Autopilot or Full Self-Driving Capability, or to use any related features, without encountering “clear and repeated statements that they do not make the vehicle autonomous.”
Evolving Marketing and Future Ambitions
Tesla currently markets its driver-assistance system as “Full Self-Driving (Supervised),” a designation intended to emphasize the requirement for active driver supervision. This branding reflects the ongoing development and regulatory scrutiny surrounding autonomous driving technologies.
The development of its autonomous driving capabilities is central to Tesla’s long-term strategy. CEO Elon Musk has frequently stated that self-driving technology is key to unlocking the company’s full potential. Tesla is actively involved in advanced autonomous driving initiatives, including operating a Robotaxi pilot program in Austin and the Bay Area. The company recently announced the production of its first Cybercab at its Giga Texas facility, signaling progress in its commercial autonomous vehicle endeavors.
The lawsuit highlights the complex regulatory landscape and public perception challenges surrounding advanced driver-assistance systems. As Tesla continues to innovate in this space, its legal challenges underscore the ongoing dialogue between technological advancement and regulatory oversight.


