Tesla has asked a Los Angeles County court to set aside a California DMV order that found its marketing of “Autopilot” and “Full Self-Driving Capability” misleading. The DMV’s December 2025 decision was an administrative finding, not a court judgment; Tesla’s February 2026 petition disputes it, and the materials available here do not establish a later court ruling.
What the California DMV decided
On December 16, 2025, the California DMV adopted an administrative law judge’s proposed decision in cases 21-02188 and 21-02189. The agency found that Tesla’s use of “Autopilot” and “Full Self-Driving Capability” for advanced driver-assistance features was misleading and violated state law. This was the DMV’s administrative determination, not a ruling on Tesla’s later lawsuit. California DMV announcement, December 16, 2025.
The marketing at issue
The DMV described marketing that began in May 2021 and used the two feature names alongside the statement: “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.” The agency said vehicles equipped with those driver-assistance features could not operate as autonomous vehicles then or at the time of its announcement. That is the DMV’s characterization of the systems and marketing, not a court finding on Tesla’s petition.
The proposed and modified penalties
The administrative law judge proposed 30-day suspensions of Tesla’s manufacturing and dealer licenses. The DMV modified that result: it permanently stayed the manufacturing-license suspension and gave Tesla 60 days to act on “Autopilot.” If Tesla did not address the issue, a 30-day dealer-license suspension would follow, according to the agency. California DMV announcement, December 16, 2025.
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DMV Director Steve Gordon said the decision “confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers and pedestrians protected.” California DMV announcement, December 16, 2025.
What changed in Tesla’s California marketing
The DMV later reported that Tesla stopped using “Autopilot” in its California marketing and therefore avoided the stated license suspensions. The agency also said Tesla discontinued “Full Self-Driving Capability” and used “Full Self-Driving (Supervised)” to make the need for driver supervision clear. California DMV corrective-action update.
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The name “Full Self-Driving (Supervised)” describes a supervised driver-assistance offering; it does not mean a vehicle can drive autonomously without a person supervising it. The DMV’s account of the revised name specifically points to the supervision requirement.
Why Tesla is suing the DMV
Tesla filed a verified petition for administrative mandamus and a complaint seeking declaratory and injunctive relief against the DMV in Los Angeles County Superior Court. The petition, Case No. 26STCP006291, asks the court to set aside the agency order. Los Angeles Times, February 26, 2026; California DMV corrective-action update.
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Tesla calls the order “factually wrong” and “legally flawed.” In its petition, the company argues that the DMV did not hear from consumers who were confused, failed to apply the reasonable-consumer standard in context, shifted the burden of proof, and disregarded disclosures that driver supervision was required. These are Tesla’s allegations in a court filing, not conclusions reached by the reviewing court. Tesla’s verified petition.
The petition states: “It was impossible to buy a Tesla equipped with either Autopilot or Full Self-Driving Capability, or to use any of their associated features, without seeing clear and repeated statements that they do not make the vehicle autonomous.” That is Tesla’s position on its disclosures; the DMV reached a contrary administrative conclusion about the marketing.
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Can Tesla still sell cars in California?
The DMV’s order did not result in the stated suspensions. The agency says Tesla took corrective action in its California marketing and avoided them. The manufacturing-license suspension had also been permanently stayed in the DMV’s modified order. The dispute Tesla brought to court concerns whether the administrative order should be set aside, rather than a reported current suspension of Tesla’s ability to sell or manufacture vehicles in California. California DMV corrective-action update.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Has a court ruled on Tesla’s petition?
The available filing and contemporaneous reporting establish that Tesla filed suit in February 2026, but do not establish a later response, hearing, or decision. It would therefore be inaccurate to say Tesla has won or lost its challenge, or to describe the petition as currently pending without checking the Los Angeles County Superior Court docket for Case No. 26STCP006291.
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