Tesla’s battle with the California Department of Motor Vehicles isn’t over after all

In Brief Posted: 4:36 PM PST · February 23, 2026 Image Credits:Justin Sullivan / Getty Images Kirsten Korosec Tesla’s battle with the California Department of Motor Vehicles isn’t over after all Tesla has filed a lawsuit against the California Department of Motor Vehicles in an attempt to overturn an agency ruling. The state DMV ruled that Tesla used deceptive marketing to overstate the automated driving capabilities of its vehicles, thereby violating state law. The lawsuit reignites an issue that appeared to be resolved last week when the DMV said it would not suspend Tesla’s sales and manufacturing licenses for 30 days. This was because the EV maker complied with the ruling and stopped using the term “Autopilot” in its California marketing materials. CNBC was first to report the lawsuit. The DMV could have taken action against Tesla. It chose not to even though an administrative law judge agreed with the DMV’s request to suspend Tesla’s licenses for 30 days as a penalty. Instead of pulling its licenses, the state regulator gave Tesla 60 days to comply. And Tesla did, although in the most extreme ways. Tesla didn’t just stop using the term Autopilot; in January it discontinued Autopilot altogether in the U.S. and Canada. Perhaps it regrets that decision and is looking for a way to bring it back. Topics california, robotaxis, Tesla, Transportation October 13-15 San Francisco, CA Save up to $680 on your pass before February 27.Meet investors. Discover your next portfolio company. Hear from 250+ tech leaders, dive into 200+ sessions, and explore 300+ startups building what’s next. Don’t miss these one-time savings. REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight.

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