Tesla is taking California's Department of Motor Vehicles to court, filing a lawsuit to overturn a regulatory ruling that accused the electric vehicle maker of false advertising around its Full Self-Driving capabilities. The legal challenge marks an escalation in the ongoing battle over how autonomous driving features can be marketed to consumers, with significant implications for the entire auto industry's approach to AI-powered driver assistance systems.
Tesla isn't backing down from California regulators. The company filed suit against the state's Department of Motor Vehicles, challenging a ruling that found the automaker engaged in false advertising when promoting its Full Self-Driving system. The legal move puts one of the most contentious issues in automotive technology squarely in front of the courts.
The California DMV's original determination centered on whether Tesla's marketing materials overpromised what its driver assistance technology could actually deliver. The agency concluded that the company's promotion of features branded as "Full Self-Driving" and "Autopilot" misled consumers about the vehicles' autonomous capabilities. Both systems require active driver supervision and don't make Tesla vehicles fully self-driving, despite what the naming might suggest.
This isn't just a California problem for Tesla. The company has faced similar scrutiny from regulators and safety advocates nationwide over its marketing approach. The National Highway Traffic Safety Administration has investigated multiple crashes involving Tesla vehicles using Autopilot or FSD, with questions about whether drivers over-relied on the technology because they misunderstood its limitations.
Tesla's FSD package, which costs $12,000 upfront or $199 per month on subscription, includes features like automatic lane changes, navigation on city streets, and traffic light recognition. But the technology still classifies as a Level 2 driver assistance system, meaning the human driver remains fully responsible and must keep their hands on the wheel and eyes on the road. That gap between the "Full Self-Driving" branding and the actual capability has created regulatory headaches.
The lawsuit represents Tesla's most aggressive pushback yet against what it likely views as regulatory overreach. CEO Elon Musk has repeatedly defended the company's naming conventions, arguing that Tesla clearly communicates the need for driver attention in its user agreements and through in-car warnings. The company maintains that its safety data shows vehicles using Autopilot have fewer accidents per mile than those driven manually.
