Tesla leaves Australian auto lobby group over ‘demonstrably false’ claims

Tesla has decided to leave Australia’s Federal Chamber of Automotive Industries (FCAI), a major auto lobby group, over accusations that the organization made “demonstrably false” claims regarding the government’s proposed clean car policy.

As we reported earlier this week, Tesla’s criticism focuses on the FCAI’s claims that the government’s CO2 scheme would substantially increase the prices of most cars. Tesla argues that these claims mislead consumers and inaccurately represent the potential impact of the NVES, which aims to reduce vehicle emissions through stricter efficiency standards.

According to Tesla, the FCAI’s narrative suggests that implementing the NVES would force most car prices to surge by thousands of dollar. In a 7 page letter which you can read at the bottom of this article, Tesla says that this is not only misleading but also harms consumer perceptions and market dynamics.

The company points out that while the FCAI projects a dramatic price hike for gas-powered vehicles, it falsely claims that Tesla’s electric vehicles (EVs) would see significant price reductions, as much as 25%, which the automaker says can lead to consumers not purchasing a Tesla with the belief that they will be dropping in price substantially in the near future. Not only that, but that those consumers will purchase a gas-guzzling car “in anticipation of soaring resale values.”

If consumers believe the FCAI’s false claims that electric vehicles are about to reduce in price by as much as 25% next year, many will conclude they should avoid purchasing one now. Such impending price changes would also have immediate commercial implications for current EV owners including fleet operators for whom residual vehicle values are very material. Similarly, if consumers believe that the FCAI truly speaks for car companies when claiming that more polluting vehicles will increase by as much as $13,000 next year, they may rush to purchase the most inefficient vehicles in anticipation of soaring resale values.

Tesla says in the letter

In response to these allegations, Tesla has called upon the Australian Competition and Consumer Commission to investigate the FCAI’s claims.

Additionally, Tesla has announced its intention to withdraw from the FCAI after the 2023-24 financial year, marking a clear stance against what it perceives as fear-mongering and misinformation.

You can read Tesla’s full letter below.

Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get a three month trial of Full Self-Driving (FSD).
Previous Article

Tesla’s Full Self-Driving Beta set for European launch following regulatory changes

Next Article

Waymo Launches Driverless Service in Austin For Employees

You might be interested in …