DMV moves to block Tesla sales in California over false ads

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Last Updated on July 22, 2025 by The HD Post Staff

CALIFORNIA – The California Department of Motor Vehicles (DMV) initiated an administrative trial against Tesla for allegedly making false claims about its advanced driver assistance system (ADAS).

The DMV’s trial brief argues that Tesla used the names “Autopilot” and “Full Self-Driving” implying autonomy, though the company admits the vehicles aren’t fully autonomous.

“This practice is false advertising under California law, and violates a new law passed in 2022, Vehicle Code section 24011.5, subdivision (b), that prohibited manufacturers and dealers, like Tesla, from using names and descriptions that falsely imply its vehicles are autonomous,” wrote DMV attorneys.

Consumers unclear on limits of advanced driver assistance features 

According to the trial brief, the California Legislature adopted a law in 2022 specifically intended to prohibit Tesla from naming its ADAS features “Autopilot” and “Full Self-Driving.”

The National Highway Traffic Safety Administration reported 392 accidents involving cars with partial driver assistance features between July 2021 and May 2022, including six deaths. 

Of those, 125 accidents occurred in California.

The brief said that many consumers are unaware of the risks and limitations of these advanced driver assistance features.

“At least some of this confusion is likely attributable to vehicle manufacturers, such as Tesla, who consistently market partial driving automated features as fully automated while failing to provide appropriate safety measures to ensure drivers pay attention while semiautonomous features are engaged,” wrote the attorneys.

‘Tesla has never misled consumers’

Tesla attorney David Marcus said the DMV is trying to hold back self-driving technology by targeting a company close to bringing autonomous cars to market.

“Let me say this very clearly, Tesla has never misled consumers. Never,” said Marcus.

The DMV first filed the allegations in July 2022 and amended them in November 2023. It now seeks a 30-day license suspension and restitution.

RELATED: California class action alleges Tesla Insurance delayed claim payments

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