Elon Musk’s Tesla faces class action in Australia over car defectsTesla owners have stunned the Australian motoring industry with a move against Elon Musk’s company.
Disgruntled Tesla owners in Australia have launched legal proceedings in the Federal Court against Elon Musk’s car manufacturer, claiming the company sold vehicles with major defects while also over-promising on the abilities of its cars.
The consumer action filed against Tesla Motors Australia by Australian firm JGA Saddler targets the sales of Model 3 and Y cars manufactured by the US-based Tesla Inc.
Both those models accounted for more than 40 per cent of Australian EV sales in 2024 despite the surge of Chinese brands entering the EV market.
The class action will target three alleged problems with the Model 3 and Y cars, including ‘phantom braking’, poor battery range and lack of autonomous driving.
“Tesla made promises about their vehicles’ safety, performance and features such as their ‘full self-driving’, but it appears some of these promises are falling flat,” JGA Saddler director Rebecca Jancauskas told AAP.
Ms Jancauskas said ‘phantom braking’, the potential for a vehicle to activate its emergency braking systems for no reason while in cruise control, was a huge problem for Tesla drivers in Australia.
“This dangerous phenomenon … would terrify you and your passengers and could, if it causes an accident, result in serious injury and/or death,” Ms Jancauskas said.
While the braking issue is a safety matter, the battery and autonomous driving issues are a matter of Tesla failing to deliver on its promises to customers, according to the class action.
“Imagine your EV has never reached 75 per cent of its advertised battery range, or the promised self-driving features, that you paid a premium of more than $5000 for, have never been delivered,” Ms Jancauskas said.
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