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Home»Tech»Elon Musk’s Tesla Avoids Disaster in California DMV Squabble
Tech

Elon Musk’s Tesla Avoids Disaster in California DMV Squabble

Press RoomBy Press RoomFebruary 18, 2026No Comments3 Mins Read
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Elon Musk’s Tesla has successfully dodged a potentially 30-day sales suspension in California after making changes to how it markets its driver-assistance technologies, according to the state’s Department of Motor Vehicles.

Bloomberg reports that Elon Musk’s EV giant will be permitted to continue selling cars in California, one of its most important markets in the world, without interruption following the company’s revision of what state regulators deemed misleading marketing practices related to its driver-assistance systems. The California Department of Motor Vehicles announced late Tuesday that Tesla has taken corrective action to address concerns about how it promoted its automated driving features.

As part of the corrective measures, Tesla has discontinued the use of its “Autopilot” branding within California and modified its marketing language around Full Self-Driving technology to better clarify when human supervision is required. These changes come after an administrative judge ruled in December that Tesla had been exaggerating the capabilities of its driver-assistance systems, which had put the company at risk of losing its sales license in the state for 30 days.

California had given Tesla a grace period to either appeal the ruling or bring its marketing practices into compliance with state regulations. The company chose the latter option, implementing the requested changes to avoid the suspension.

The California case represents just one facet of the extensive scrutiny Tesla has faced regarding its driver-assistance technologies. For years, the company has been under investigation by federal prosecutors, securities regulators, and the National Highway Traffic Safety Administration (NHTSA). Additionally, Tesla has faced numerous lawsuits from both consumers and investors concerning how its driver-assistance features are marketed, utilized, and perform in real-world conditions.

Breitbart News previously reported on a Tesla crash case involving Autopilot that resulted in a massive verdict of over $200 million against Musk’s company in Florida:

The lawsuit centers around a deadly crash that took place in Key Largo, Florida, involving a Tesla Model S electric sedan driven by George McGee. At the time of the incident, McGee was using Tesla’s Enhanced Autopilot, a partially automated driving system.

According to court testimony, McGee dropped his mobile phone while driving and attempted to retrieve it, believing that Enhanced Autopilot would brake if an obstacle was in the way. However, he accelerated through an intersection at just over 60 miles per hour, colliding with a nearby parked car and its owners, who were standing on the other side of their vehicle.

The crash resulted in the death of 22-year-old Naibel Benavides, who was found about 75 feet away from the point of impact. Her boyfriend, Dillon Angulo, survived but suffered multiple broken bones, a traumatic brain injury, and psychological effects. The plaintiffs in the case include Benavides’ surviving family members and Angulo, who are seeking compensation for medical expenses, pain and suffering, and wrongful death, as well as punitive damages.

Both Autopilot and Full Self-Driving systems require continuous human supervision and do not render Tesla vehicles fully autonomous, despite naming conventions that may suggest otherwise. This confusion has been further compounded by Tesla’s efforts to develop and promote a robotaxi business, which has led to additional questions about the true capabilities of its technology.

Read more at Bloomberg here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.

Read the full article here

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