A class action lawsuit has been filed in Australia against Tesla, alleging that many of the company's vehicles have been unable to deliver on the promised capabilities of its Full Self-Driving technology.
What's happening?
As reported by Electrek, thousands of Tesla owners in Australia have joined in on a class action lawsuit accusing the electric vehicle manufacturer of misleading consumers about the capabilities of its FSD hardware. According to the lawsuit, real-world applications of Tesla's FSD technology are not living up to what drivers were promised.
The lawsuit also addresses the issue of "phantom braking" by Tesla's Automatic Emergency Braking system, which some drivers claim engages suddenly and without reason, creating a potential safety risk. Drivers who have also experienced issues with vehicles not reaching advertised driving ranges are encouraged to register for the lawsuit as well.
Led by the law firm JGA Saddler, the class action lawsuit is currently only open to drivers in Australia who purchased Tesla Model 3 and Model Y vehicles between May 2021 and February 2025.
As Electrek notes, the legal action appears to signal that "the sharks are circling" Tesla, explaining that the lawsuit could be a slam dunk if JGA Saddler's team can prove that the EV company knew the true limitations of its technology.
Why are alleged false claims regarding Tesla's FSD technology important?
In a press release announcing the lawsuit, JGA Saddler's Director, Rebecca Jancauskas, offered up her take on the potential risks of Tesla's technology and how it has been marketed to consumers.
"Imagine driving down the motorway in your high-tech electronic [sic] vehicle with cruise control, or so-called Autopilot, engaged and it applies the brakes for no apparent reason," Jancauskas said. "This dangerous phenomenon, known as 'phantom braking,' would terrify you and your passengers and could, if it causes an accident, result in serious injury and/or death."
JGA Saddler argues that Tesla had claimed that FSD would enable full autonomy. However, the technology requires active driver supervision at all times. Despite its name, FSD is a Level 2 driver-assistance system that requires the driver to remain attentive and ready to take control immediately. That includes drivers keeping their hands on the wheel at all times.
With highly publicized controversies focused on Tesla and the company's credibility, some drivers may eventually lose trust in EVs. This could slow down the shift from gas-powered cars, prolonging air pollution and the record-setting levels of carbon pollution being produced worldwide.
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For sure 💯 What's being done about Tesla FSD claims?
This isn't the first time that Tesla has faced blowback regarding the marketing of its FSD technology. Earlier this year, the General Directorate for Competition Policy, Consumer Affairs, and Fraud Control in France issued a warning to Tesla, alleging that the company was misleading car buyers.
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According to David Haughan, investment officer at the consulting firm Woodsford, the new class action lawsuit in Australia isn't just a chance for owners to be compensated for Tesla's perceived failures, but it's also the perfect opening for the company to mend its broken trust.
"Tesla customers have not got what they paid for," Haughan said. "They were sold a car based on promises about the vehicles' self-driving capabilities, battery range, and safety features, and Tesla has not delivered. Far too many customers have experienced dangerous 'phantom braking' incidents. Tesla should take this opportunity to repair its relationship with its customers."
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