Tesla's battle with the California Department of Motor Vehicles isn't over after all | TechCrunch

TechCrunch

by Kirsten Korosec

February 24, 2026

AI-Generated Deep Dive Summary

Tesla has filed a lawsuit against the California Department of Motor Vehicles (DMV) following a ruling that accused the company of deceptive marketing regarding its Autopilot feature. The DMV found that Tesla overstated the capabilities of Autopilot, violating state law. Despite this, the DMV initially chose not to suspend Tesla’s licenses, giving the company 60 days to comply instead of imposing penalties. Tesla complied by discontinuing Autopilot in the U.S. and Canada, but now they are challenging the ruling through legal action. The situation was thought to be resolved when the DMV decided against suspending Tesla's licenses after the company stopped using the term "Autopilot" in its marketing materials. However, Tesla's decision to remove Autopilot entirely from the U.S. and Canada market might have led them to reconsider this move, prompting their legal challenge. This lawsuit underscores the ongoing tension between regulatory bodies and tech companies over the accurate representation of autonomous driving technologies. This case matters significantly for readers interested in technology, as it highlights the challenges of regulating advanced automotive systems and marketing practices. The outcome could set a precedent for how companies market autonomous driving features and interact with regulators. For Tesla, the lawsuit may be an attempt to reintroduce Autopilot while addressing concerns about its previous marketing strategies, potentially influencing the future of driver-assistance technologies in the industry.

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Originally published on TechCrunch on 2/24/2026