California DMV Rules Tesla’s ‘Autopilot’ Advertising Violates State Law
On December 16, 2025, the California Department of Motor Vehicles announced that it has determined Tesla Motors’ marketing of its driver‑assistance technology violates state law. After an administrative law proceeding earlier this year, the DMV adopted a judge’s finding that Tesla’s use of the terms “Autopilot” and “Full Self‑Driving Capability” could mislead consumers into believing the vehicles are fully autonomous when they are not【671515981419411†L272-L333】. Under California regulations, manufacturers cannot misrepresent driver assistance systems as autonomous driving features.
The decision stems from complaints filed in 2021 and 2022 alleging that Tesla promoted its vehicles as self‑driving even though the company instructs drivers to keep their hands on the wheel and remain attentive. The DMV found that Tesla did not provide adequate warnings in marketing materials to clarify that the systems require constant driver supervision. The judge noted that Tesla’s advertising repeatedly used phrases like “self‑driving” and “autonomous” without clearly explaining the limitations of the technology, which could cause consumers to overestimate the capabilities of their cars.
The DMV’s ruling partially reduces the penalties proposed by the judge. Instead of an immediate suspension, Tesla’s dealer and manufacturer licenses will remain valid provided the company stops misleading advertising and updates marketing materials within 60 days. If Tesla fails to comply, the DMV will impose a 30‑day suspension of its dealer license【671515981419411†L272-L333】. The agency also ordered Tesla to submit evidence of compliance and to stop using the Full Self‑Driving name in California.
In a statement, DMV Director Steve Gordon said the decision reflects the agency’s commitment to public safety and fairness. “We must ensure that Californians understand the limits of driver‑assistance technologies. Misleading claims put drivers, passengers and other road users at risk and undermine trust in emerging vehicle technologies,” Gordon said【671515981419411†L272-L333】. He also noted that the decision is intended to level the playing field so that companies that follow the rules are not undercut by competitors who overstate their capabilities.
Californians who own Tesla vehicles can continue to drive them, and the DMV emphasised that the ruling does not affect registration or ownership. The agency encourages drivers to visit dmv.ca.gov to access more than 80 online services, schedule appointments and learn about Real ID requirements. As of May 2025, federal law will require a Real ID or other federally accepted document for domestic air travel and entrance to secure federal facilities. Drivers with questions about the ruling can contact the DMV’s automotive industry services division for guidance.