Tesla has filed a lawsuit against the California Department of Motor Vehicles after a regulatory ruling restricted how the automaker markets its advanced driver-assistance systems. The December 2025 decision by a California administrative law judge required Tesla to revise the use of "Autopilot" and "Full Self-Driving" (FSD) in promotional materials or risk losing its license to sell vehicles in the state.
Following the order, the DMV confirmed that Tesla updated its branding to "Full Self-Driving (Supervised)," a move that prevented immediate suspension. However, the company is now challenging the ruling in court.
Tesla Calls DMV Decision 'Unconstitutional'
On February 13, Tesla filed a complaint describing the DMV's determination as "wrongful and baseless," arguing that the order is both factually incorrect and unconstitutional.
According to CNBC, Tesla maintains that customers are clearly informed, multiple times during purchase, that Autopilot and FSD features do not make vehicles fully autonomous. The automaker contends that regulators failed to demonstrate that consumers were misled by the terminology.
Autonomous Vehicle Strategy at Stake
Autonomous driving remains central to Tesla's long-term growth strategy. CEO Elon Musk has consistently projected a future built around fully autonomous vehicles and a large-scale robo-taxi network.
According to Engadget, limited real-world testing continues through Tesla's Robotaxi pilot program in Austin, Texas, with the upcoming Cybercab two-seater expected to expand those efforts.
Legal and Regulatory Pressures
The lawsuit follows Tesla's recent loss in a $243 million case tied to a 2019 Model S crash, where Autopilot marketing claims were closely scrutinized. Additionally, Tesla discontinued the base Autopilot tier for new Model 3 and Model Y vehicles and shifted FSD (Supervised) to a subscription-based model, reflecting ongoing regulatory adjustments.
The EV maker showed that escaping the sales suspension doesn't end there. The marketing play from Tesla is only the beginning, so it could take advantage of its presence in the crowded EV market.
Originally published on Tech Times
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