07:09 AM EST, 02/25/2026 (MT Newswires) -- (Updated to add California's Department of Motor Vehicles' comment in the fifth paragraph.)

Tesla (TSLA) has filed a lawsuit against California's Department of Motor Vehicles in a bid to reverse a ruling that found the electric vehicle maker breached the law by falsely promoting its cars' self-driving capabilities, news outlets reported Monday.

California's Office of Administrative Hearings previously determined that the company engaged in false advertising, saying the DMV could temporarily suspend the EV maker's licenses to make or sell cars in the state, CNBC reported.

The DMV later said Tesla had cleaned up its marketing language appropriately, while license suspension would not be required, according to the report.

Tesla lawyers alleged in the complaint that the DMV "wrongfully and baselessly" labeled the company a "false advertiser" for its previous use of the terms "Autopilot" and "Full Self-Driving," CNBC reported.

"An administrative law judge found that Tesla broke state law by misleading consumers with the term 'autopilot," the DMV told MT Newswires via email, adding that Tesla agreed to stop the practice but is now challenging the ruling.

Tesla didn't respond to MT Newswires' request for comment.