Tesla accepted every correction, then sued to erase the record that forced them.
Tesla officially admitted it never had Autopilot. Not on Twitter. Not in SEC filings. In the most boring and quiet way possible: compliance with a California DMV order to stop lying to the public.
On February 17, 2026, the California DMV announced that Tesla had removed “Autopilot” from its marketing and discontinued it as a standalone product in the US and Canada.
This followed a December 2025 ruling by an administrative law judge (ALJ) who found that Tesla’s use of the term was misleading and violated state law. The ALJ called Full Self-Driving a name that is “actually, unambiguously false.”
And water is wet.
The DMV’s own language is unsparing when you see how they officially describe vehicles equipped with those ADAS features:
…could not at the time of those advertisements, and cannot now, operate as autonomous vehicles.
Elon Musk lied. He never, ever corrected the lies, even as hundreds were killed.
Tesla had every opportunity to fight.
They could have contested the findings, challenged the ALJ’s authority, appealed through administrative channels. Instead they quietly complied within the 60-day window, stripped the branding, and restructured their entire ADAS product line around the order. All on the same date.
Their compliance is a HUGE confession.
The Lawsuit That Explains Everything
Four days before the DMV announced Tesla’s compliance, Tesla filed suit in Los Angeles Superior Court to erase the ruling entirely. The company alleges the DMV “wrongfully and baselessly” labeled it a false advertiser.
Tesla’s legal argument is that no California customer was ever actually confused about whether their car could drive itself. This is a company that accepted the marketing was indefensible, made every change the state demanded, then sued to eliminate the official record that forced those changes.
They don’t want the word “Autopilot” anymore, because the ruse is up. They want the finding gone. They want their victims to be at fault.
The reason is straightforward.
Tesla has told investors it has 1.1 million “FSD subscribers” and its entire valuation thesis depends on becoming a robotaxi company. A formal, on-the-record finding of false advertising about self-driving capabilities is a powerful staff of justice handed to every plaintiff’s attorney in the country. The lawsuit is all about liability containment.
The Damage Already Done
The liability is real. A federal judge just upheld a $243 million verdict against Tesla in a fatal Autopilot crash — the first major plaintiff victory in an Autopilot wrongful death case. Tesla had rejected a $60 million settlement before trial.
Since that August 2025 verdict, the company has quietly settled at least four additional crash lawsuits rather than let more juries hear the evidence.
In January 2026, Tesla was sued over a Model X crash that killed an entire family of four when the vehicle allegedly veered into oncoming traffic. A separate class-action involves customers who bought Full Self-Driving expecting their cars to become robotaxis and now want refunds. NHTSA launched a probe in October 2025 into 2.88 million Tesla vehicles after connecting 58 incidents to FSD, including vehicles running red lights and driving into oncoming lanes.
Dozens more cases are working through the courts, because Tesla is a death trap based on lies.
The Defense That Convicts
Tesla’s arguments in the lawsuit deserve attention for what they reveal.
First:
It is impossible to buy a Tesla equipped with either Autopilot or Full Self-Driving Capability without seeing clear and repeated statements that they do not make the vehicle autonomous.
This is an admission that the product names were always misleading enough to require disclaimers, which existed precisely because the branding said something the technology couldn’t deliver.
I’ve written before how this directly contributed to mass death. No marketing would have been far better than the fraud of claiming a capability, and then warning against it. It’s like walking into a room and saying “I’m not going to accuse this person of murder” and then pretending you never said anything people should think.
Second: the DMV had known about the “Autopilot” branding since 2014 and “Full Self-Driving” since 2016, and therefore shouldn’t be able to act now. This is the argument that you’ve been getting away with a crime for so long that your crimes should be legalized. Tesla tried this same defense in 2023. It didn’t work then either.
The ALJ addressed the consumer confusion argument directly in her ruling. The DMV’s authority to regulate vehicle advertising:
…does not depend on evidence that any particular advertising actually has deceived or harmed any person.
The state can act to prevent deceptive advertising. It doesn’t need to wait for a body count, though Tesla has provided one anyway.
Supervised Self-Driving
Tesla’s retreat position is “Full Self-Driving (Supervised)” as an obnoxious oxymoron that exists because they needed language that preserved the FSD brand while denying FSD has any brand value. It’s like selling a life preserver (concrete shoes) and then shrugging at all the drowned victims. Supervised self-driving is driving with a huge marketing budget and propaganda office working round the clock. The parenthetical does the liability shift while the product name does the toxic selling.
Meanwhile, Tesla is building the fraud of a Cybercab (1950s science fiction of no steering wheel and no pedals) on the premise that full autonomy is imminent. The company that just admitted it can’t call its current system “Autopilot” because that overstates its capabilities is simultaneously manufacturing a car that pretends to have no manual controls at all.
This is a contradiction Tesla is betting everyone and especially investors won’t care about.
What Compliance Means
Tesla complied with the DMV order, removed the branding, restructured its product line, and then sued to pretend none of it happened. The sequence tells you everything. The marketing was false. The technology was oversold. People died in cars they were told could drive themselves. The state called it what it was. Tesla accepted the correction and is now trying to shred the receipt.
The ALJ noted in her decision that without the threat of suspension, Tesla offered:
…no reason for the DMV to expect that respondent will alter the Autopilot name, or will act to avoid continuing its misrepresentations to the public.
She is right.
Tesla didn’t stop because it agreed. It stopped because California is its largest EV market and a 30-day sales ban was unacceptable. Compliance was a business decision. The lawsuit is the tell that it was never a moral one.
Autopilot is gone because a judge ruled it was always a lie and Tesla chose market access over defending the claim.
That’s the core admission. Tesla is and has always been fraud. Elon Musk is worthless.

Everything else is lawyering.