California Regulators Revive Legal Fight Over Tesla's 'Full Self-Driving' Claims

A legal battle between Tesla and California regulators, which many thought was settled, has sprung back to life. The California Department of Motor Vehicles is pressing forward with allegations that Tesla misled consumers with the names "Autopilot" and "Full Self-Driving." This renewed clash puts a spotlight on how car companies can market advanced driving software that still requires a human at the controls.

The core of the dispute hasn't changed since the DMV's initial 2022 complaint: officials argue the term "Full Self-Driving" suggests a capability the technology lacks. Tesla maintains the name is aspirational and that customers are clearly warned the driver must remain attentive. The company continues to sell the FSD package, a major revenue source, despite it being classified as a Level 2 system, where the driver is always responsible.

New court filings show the fight is now over the DMV's authority itself. Tesla's lawyers contend the agency, which typically handles licenses and registrations, is overreaching by policing advertising. They argue that role belongs to the Federal Trade Commission. The outcome could set a national precedent, as every automaker developing similar driver-assist technology watches closely.

The case is charged by real-world safety concerns. Federal investigators have examined crashes, some fatal, where drivers using Autopilot or FSD appeared inattentive. Critics say the product names encourage overconfidence. Tesla points to its own safety reports showing fewer accidents when its systems are active, though experts note those comparisons are complex.

With no resolution in sight, the stakes are high. A ruling against Tesla could force a rebranding of its flagship software and influence regulators nationwide, testing the balance between promoting innovation and protecting consumers from what they see as potentially dangerous hype.