Tesla sues California regulators amid legal battle over autopilot - Los Angeles Times

Los Angeles Times

by Caroline Petrow-Cohen

February 26, 2026

AI-Generated Deep Dive Summary

Tesla has filed a lawsuit against the California Department of Motor Vehicles (DMV) in response to allegations of false advertising regarding its Autopilot and Full Self-Driving (FSD) features. The DMV accused Tesla of misleading consumers by implying that these systems could operate autonomously without requiring constant human supervision. Last year, an administrative judge ruled Tesla guilty of false advertising, leading the DMV to threaten suspending Tesla sales in California if the company did not correct its marketing practices within 90 days. In response, Tesla stopped using the term "Autopilot" in its marketing materials and began describing FSD as "supervised." However, Tesla is now challenging this ruling, arguing that it was factually incorrect and legally flawed. The core issue revolves around how Tesla markets its driving-assistance features. While Autopilot and FSD are designed to assist drivers, they still require active oversight. Tesla maintains that its customers were fully informed about the limitations of these systems through clear and repeated warnings in marketing materials and user interfaces. The company emphasized that it was impossible to purchase or use these features without understanding their non-autonomous nature. This legal battle highlights broader concerns about safety, consumer trust, and regulatory oversight in the autonomous vehicle industry. The DMV's stance is driven by a desire to prevent public misinterpretation of Tesla's technologies, which could lead to dangerous situations if drivers over-rely on the systems. Meanwhile, Tesla's challenge reflects its determination to protect its brand image and continue using terms like "Autopilot" and "Full Self-Driving capability," which are critical for market differentiation. The outcome of this case could set a precedent for how autonomous vehicle companies market their technologies. It also underscores the high stakes for Tesla as it bets heavily on advancing AI and autonomous driving capabilities, facing competition from companies like Waymo and Zoox. Despite ongoing challenges, including issues with its robotaxis in Austin, Texas, Tesla's shares have continued to rise, reflecting investor confidence in its future potential. For readers interested in news and technology, this story highlights the intersection of innovation, regulation, and public safety. It also sheds light on the broader implications for the automotive industry as it transitions toward autonomous vehicles, balancing technological advancements with clear communication to consumers.

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Originally published on Los Angeles Times on 2/26/2026