Elon Musk's Tesla Sues California DMV Following False Advertising Row Around FSD, Autopilot
- by Benzinga
- Feb 24, 2026
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Tesla Inc. (NASDAQ:TSLA) is suing the California Department of Motor Vehicles (DMV) after the automaker dropped the "Autopilot" term from its marketing activities amid the false advertising row.
Baselessly Labeling Tesla A False Advertiser, Court Filing Says
Lawyers representing Elon Musk's EV giant claim that the agency did not prove there was confusion among customers about the technologies' capabilities. "DMV presented no consumer witnesses and instead relied almost entirely on the testimony of a single law professor," the filing said, also adding that the brand had made it clear that the Autopilot and FSD Supervised technologies do not make vehicles autonomous.
California DMV Vs. Tesla
The news comes as the California DMV sued the automaker and sought a 30-day suspension of Tesla's sales and manufacturing operations in the state, alleging that the automaker had misled consumers about its systems' capabilities.
While a court ruled in favor of the agency, the DMV did not go through with the suspension and ultimately provided Tesla a 90-day period to rectify its marketing practices and Tesla avoided a suspension.
Tesla's FSD
Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term.
Price Action: TSLA slid 2.91% to $399.83 at Market close on Monday, and surged 0.19% to $400.57 during the overnight session.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Mijansk786 on Shutterstock.com
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