Tesla is facing a potential class action lawsuit in Australia alleging that the automaker misrepresented the capabilities and performance of its vehicles, particularly regarding Autopilot, battery range, and self-driving hardware.
According to a website from the two law firms initiating the class action, Woodsford and JGA Saddler, the lawsuit focuses on three main issues alleged to affect Tesla Model 3 and Model Y vehicles manufactured from 2021 onwards equipped with ‘Tesla Vision,’ a camera-based system that replaced a camera+radar solution for self-driving and other safety features, along with Autopilot. The lawsuit also covers the company’s range claims, arguing that Tesla’s marketing and real-world performance of these features do not align.
Autopilot & Phantom Braking
One of the allegations is the issue of “phantom braking,” where Tesla’s Autopilot system applies emergency braking unexpectedly, potentially leading to an increased risk of accidents. Many Tesla owners have reported such incidents over the years, where their vehicles brake without apparent reason, posing dangers to both drivers and other road users.
Tesla has faced similar cases in other markets, including the US where the company failed to get a case dismissed last year.
Driving Range
The lawsuit also challenges Tesla’s advertised range figures, claiming that the vehicles fail to achieve the promised maximum range. According to the legal filing, Tesla vehicles struggle to come close to the displayed range. This discrepancy between real-world range and advertised range has been challenged in other markets, like in South Korea where Tesla was fine $2.2 million for overstating the driving range of their electric vehicles (EVs) in cold weather.
Full Self-Driving Hardware
Another significant aspect of the case revolves around Tesla’s self-driving promises. Since 2016, Tesla has claimed that all its vehicles come equipped with the necessary hardware for Full Self-Driving (FSD) capability. However, the lawsuit argues that the Hardware 3 (HW3/AI3) self-driving computer is insufficient for achieving fully autonomous driving, despite past marketing claims. This part of the lawsuit comes after recent comments by Tesla CEO Elon Musk that HW3 will not be capable of unsupervised self-driving, and that the company will provide free upgrades to these owners, but on an unspecified timeline.
While Tesla has yet to formally respond to the lawsuit, the case could have broader implications for the company’s operations not only in Australia, but beyond. If the court finds merit in the allegations, Tesla may be required to compensate affected owners or revise its marketing practices to reflect the actual performance of its vehicles.
The class action is open to individuals who purchased or leased a Tesla Model 3 or Model Y in Australia between May 2021 and February 2025. Affected owners can register at Tesla Motors Class Action | Australia.
