Tesla under fire after conducting dangerous test run on public roads: 'Very close proximity to very large numbers of members of the public'

Australian authorities have claimed that Tesla ran unapproved tests of its self-driving technology, potentially endangering nearby drivers and pedestrians.

What's happening?

In May, Tesla shared a video online of its "Full Self-Driving" feature being tested in Melbourne. The video showed a Tesla driving itself through busy streets, with a large number of cars, pedestrians, and bikes also on the road.

But according to the Australian Broadcasting Corporation, any company testing autonomous driving in the state of Victoria must obtain a permit, which Tesla reportedly did not do.

"They had the vehicle moving around in very close proximity to very large numbers of the public," Michael Milford, director of Queensland University of Technology's robotics center, told ABC News. "And for such a test to go forward, you would definitely want full approval and endorsement from the relevant authorities."

FSD still requires a driver to be at the steering wheel in case any issues arise, and in the video, a person sat in the driver's seat with their hands just off the wheel. But that didn't provide Milford with much comfort.

"If the car had gone out of control in close proximity to those people, the driver would have had almost no chance of intervening quickly enough to prevent a major tragedy," Milford told ABC News.

Why is this important?

This report comes during a year that has seen a number of pieces of bad news hit Tesla's automotive division.

The company's sales numbers have dropped drastically, even as overall EV sales soar. One of its most-hyped releases in recent years, the Cybertruck, saw just 4,309 units sold in 2025's second quarter.

In July, for the first time this year, Tesla's Model Y wasn't the top-selling EV model in Australia. Instead, that spot was taken by Chinese automaker BYD, which had three models outselling the Model Y.

What's being done about autonomous driving?

Tesla has been working for years to get FSD approved in Australia, and a company official said this summer there were "no regulatory blockers" remaining, giving hope that the feature would soon be available.

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The company has pinned much of its future on autonomous, self-driving cars, whether it's by including FSD as an option in cars purchased by consumers, or by launching self-driving programs like its Robotaxi service.

But that future could face some major challenges. 

Most notably, the company faces a class-action lawsuit in California that claims Tesla misled drivers about FSD's capabilities. If Tesla were to lose that case, not only would the company owe damages to each participant in the suit, but it would also be banned from operating in California for a month, and it could face similar suits elsewhere.

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