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Home » The battle between Tesla and the California Department of Transportation is far from over.
Automotive & Transportation

The battle between Tesla and the California Department of Transportation is far from over.

Bussiness InsightsBy Bussiness InsightsFebruary 24, 2026No Comments1 Min Read
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Tesla filed a lawsuit against the California Department of Transportation to overturn the agency’s decision. The state DMV has ruled that Tesla violated state law by using deceptive marketing to exaggerate the self-driving capabilities of its vehicles.

The lawsuit reopens an issue that appeared to be resolved last week when the DMV announced it would not suspend Tesla’s sales and manufacturing license for 30 days. That’s because EV manufacturers have complied with the ruling and stopped using the term “Autopilot” in California marketing materials. CNBC first reported the lawsuit.

The DMV could also take action against Tesla. Even though an administrative law judge agreed to the DMV’s request to suspend Tesla’s license for 30 days as a penalty, the company chose not to do so. Instead of revoking the license, state regulators gave Tesla 60 days to comply.

And Tesla did so, albeit in the most extreme way. Tesla hasn’t just stopped using the term Autopilot. In January, Autopilot was completely phased out in the United States and Canada. Perhaps he regrets that decision and is looking for a way to go back.



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