Australian Tesla Owners Sue Over Self-Driving Claims

A new class action claims Tesla misled its Australian customers about the self-driving capabilities of its electric vehicles.

Filed in the Federal Court by the law firm JGA Saddler, the class action – which represents buyers of Model 3 and Model Y vehicles sold after May 2021 – alleges Tesla falsely promoted its vehicles as supporting autonomous or semi-autonomous driving technology.

The lawsuit also claims Tesla vehicles did not achieve the maximum ranges displayed on their instrument screens when the battery was above 50 per cent, and the cars suffered from abrupt “phantom braking” – increasing the risk of accidents.

The company has faced several class action lawsuits in the US over similar allegations, with owners claiming Tesla “[misled] the public regarding its Autopilot, Enhanced Autopilot, and Full Self-Driving Capability (FSD) technology,” website Electrek reported at the time.

While Tesla defended its action by claiming “mere failure to realise a long-term, aspirational goal is not fraud,” the US judge ruled – under the terms and conditions agreed to during the purchase of the vehicle – the owners must arbitrate their claims against the company individually.

In late 2024, Tesla won another class action – this time raised by shareholders, who accused the company of fraud by overstating the effectiveness of its self-driving technology to boost its share price – with the court ruling the plaintiffs failed to make their case.

This latest Australian case alleges the ‘Tesla Vision’ system fitted to its electric cars was incapable of supporting autonomous or semi-autonomous driving systems, “despite statements or representations to the contrary,” JGA Saddler wrote in a statement on its website.

The law firm is inviting owners of Tesla Model 3 and Model Y electric vehicles purchased between May 2021 and December 2024 to join the class action.

CarSauce has contacted Tesla Australia for comment.