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Australians take class action against Tesla

Geoff Dobson · 0 comments
The Tesla Model 3 made the top ten new cars sold list in New Zealand in September 2020

An Australian class action alleges Tesla has overstated its US-made EVs’ capabilities around battery life and self-driving.

A consumer action filed in the Federal Court accuses Tesla Motors Australia of selling Model 3 and Y cars manufactured by the US-based Tesla Inc based on hyped claims.

The action, filed by law firm JGA Saddler, alleges Tesla Australia and Tesla US marketed and sold vehicles manufactured by Tesla US that are defective, resulting in potentially dangerous ‘phantom braking’, and that the company made promises around the vehicles’ automation and driving range that are not being fulfilled.

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The action covers various Tesla models sold or leased from May 25, 2021.

The Model 3 and Y are the two most popular EV models in Australia, accounting for more than 40% of all battery electric vehicle (BEV) car sales nationwide in 2024, The New Daily reports.

It says the class action focuses on three alleged problems, including phantom braking – or the tendency for cars to reportedly turn on emergency braking for no reason while in cruise control or auto-pilot modes.

Tesla Inc is also accused of failing to deliver on promises to achieve an advertised maximum range or achieving fully autonomous self-driving capability.

Drivers who purchased or leased a Model 3 or Y equipped with Tesla Vision, a camera-based system that assisted with automated driving, since May 2021 are eligible to join the class action, says the report, adding Tesla did not immediately respond to a request for comment.

Given the increasing movement towards EVs it is important that, where defects arise and companies are known to have overstated their vehicles’ abilities, that the companies in question are held accountable, says JGA Saddler director Rebecca Jancauskas.

Click here for more class action information.

Meanwhile, Investing.com reports Tesla’s shares fell sharply Tuesday following data showing that European and British sales fell in January.

It says Tesla grappled with increased competition from Chinese rivals and from European manufacturers.

And The Driven.io says US president Donald Trump and his senior advisor and Department of Government Efficiency head Elon Musk have pulled the plug on EV charging at federal buildings – effectively stopping about 8000 charging ports across the US – and could at least mothball the entire federal EV fleet.

Geoff Dobson

Geoff Dobson is an 'old-school journo' thriving in a world of new technology. With 40-years of journalism experience already behind him, Geoff joined Auto Media Group three years ago to lead its EVtalk titles. A keen cyclist, he puts his Auckland commute to good use testing ebikes and scooters along the North Western cycleway.

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