Tesla insists it isn't guilty of false advertising

A Tesla model. .

Towards the end of last year we brought you the news that Tesla had hit a major branding roadblock, with a judge ordering the EV manufacturer to rename its 'Autopilot' and 'Full Self-Driving' features.

A judge ruled that these names were misleading, implying that the cars can drive themselves. And Tesla was ordered to change them or face a sales ban in its most popular state, California. But now Tesla is hitting back at the ruling.

In December, the Department of Motor Vehicles (DMV) found Tesla "in violation of state law for misleadingly using the terms “autopilot” and “Full Self-Driving Capability” in the marketing of their electric vehicles," and provided "an opportunity for Tesla to address issues prior to an imposition of a penalty."

The brand has already renamed its "Full Self-Driving Capability" (Image credit: Tesla)

And now, in an unexpected twist, Tesla is suing the DMV, calling the ruling "factually wrong, legally flawed, and unconstitutional." In a new legal complaint, Tesla suggests the DMV "wrongfully and baselessly labels Tesla a false advertiser for marketing its industry-leading advanced driver-assistance systems(“ADAS”) under the brand names “Autopilot” and “Full-Self Driving Capability."

"Tesla made clear—and has always made clear—that they do not make Tesla vehicles autonomous, and that active driver supervision is required," the complaint adds.

Tesla has called the ruling "factually wrong, legally flawed, and unconstitutional." (Image credit: Tesla)

In response to the legal challenge, the DMV tells CNBC, “An Administrative Law Judge found that Tesla broke state law by misleading consumers with the term ‘autopilot.’ Tesla agreed to stop this practice, and now they’re challenging it anyway. DMV is committed to protecting the traveling public and will defend the Administrative Law Judge’s findings and decision in court.”

Indeed, it's curious that Tesla is challenging a ruling that is has already complied with. The brand has changed the name of Full Self-Driving Capability, going for Full Self-Driving (Supervised). Meanwhile, the company's support web page now makes the following caveat when describing Autopilot: "Autopilot refers to a suite of advanced driver assistance features that are intended to make driving more convenient and less stressful. None of these features make Model Y fully autonomous or replace you as the driver."