Why Is Tesla Facing Legal Action In Australia?

In March the Federal Court listed a class action against Tesla Motors Australia and its US parent after thousands of drivers added their names to the paperwork. Woodsford is paying the legal costs, and litigation practice JGA Saddler filed the claim.

Court documents say the dispute covers Model 3 and Model Y cars built from 2021, each fitted with the camera-based “Tesla Vision” setup, an Autopilot driver assist package and a lithium-ion battery. The filing says those three features do not work as advertised.

Drivers who purchased or leased the cars in Australia between May 2021 and February 2025 make up the group. According to the claim, every buyer paid a premium price in the belief that the technology promised a safer and longer journey.

The Federal Court will decide later this year whether the case moves to trial.

 

How Does Phantom Braking Feel Behind The Wheel?

 

Sydney owner Dominic Yin told ABC’s 7.30 that his car suddenly slowed on the Hume Highway while a lorry travelled close behind him. He described a blast from the horn, an angry hand gesture and a rush of fear as the vehicle braked without his input.

ABC reported that Mr Yin has logged several similar moments and now drives with extra caution whenever Autopilot is active. He said, “You feel the car seize control and take you on a scary ride.”

Class action lawyer Rebecca Jancauskas added that about 10,000 motorists have shared comparable accounts of abrupt deceleration at motorway speeds. Many told her office they had both hands on the wheel and eyes on the road when the software acted alone.

 

Why Do Drivers Dispute The Promised Battery Range?

 

The claim says the cars fall short of the distance displayed on the dashboard once the charge dips under half. Owners on long journeys complain that extra charging stops add time, cost and anxiety.

Court filings describe sales brochures that quoted optimistic mileage figures. Woodsford argues those numbers tempted buyers who needed reliable distances across outback stretches where chargers are rare.

 

 

Ms Jancauskas maintains that weaker range also damages resale value. Second hand shoppers read online forums and hesitate to pay top price when they learn about unexpected charging breaks.

The lawsuit therefore asks the court for cash to cover extra electricity, lost time and lower trade in offers. For many drivers, the extra expense outweighs any savings they hoped to gain from switching to an electric car.

 

Has Tesla Answered The Allegations?

 

The court invited Tesla to file a defence, but no public response has appeared so far. The company often points to driver error when Autopilot is blamed for crashes overseas, and it says the feature is designed to make travel safer.

Tesla recently posted a promotional video that showed trial runs through Melbourne, insisting that even complex city turns pose no problem for its code. The clip drew criticism from drivers who have experienced unexpected braking on identical roads.

Silence in the courtroom does not mean the case will fade. Lawyers plan to press for internal data on braking events, battery logs and marketing plans when hearings resume.

 

Could This Influence The Self-Driving Car Industry And Laws Globally?

 

Transport law lecturers say regulators in Europe and North America are studying the Australian case. If the claim succeeds, consumer groups abroad may quote the judgment when they question bold self driving promises.

In the United States Tesla has already settled lawsuits over fatal crashes while refusing to admit fault. Safety agencies there logged hundreds of phantom braking complaints last year, and they continue to request software updates and test results.

Mr Yin hopes the court forces Tesla to either fix the code or buy his car back. Until that day he keeps a wary eye on traffic behind him and touches the brake pedal at the first hint of a shudder.

A trial date is expected later this year, and both sides know the ruling could influence beyond Australia in turn.