Australian consumers have initiated a class-action lawsuit against Tesla, alleging that the company has exaggerated its electric vehicles’ battery life and self-driving features. The legal action, filed in the Federal Court, accuses Tesla Motors Australia of marketing the Model 3 and Model Y vehicles based on inflated assertions.

Rebecca Jancauskas, director of the law firm JGA Saddler, which is representing the plaintiffs, stated that Tesla has made commitments regarding the safety, performance, and functionalities of its vehicles, including the much-touted full self-driving feature. However, it appears that many of these commitments are not being fulfilled.

The Model 3 and Model Y are Australia’s most popular electric vehicle models, collectively representing over 40 percent of the country’s sales of battery-only cars in 2024. The class action highlights three primary concerns, one of which is “phantom braking,” where vehicles reportedly engage in emergency braking unexpectedly while operating in cruise control or Autopilot modes. This alarming issue could potentially lead to serious accidents, resulting in injury or fatalities.

Additionally, Tesla is accused of failing to meet its advertised maximum range and not delivering on the promise of fully autonomous driving capabilities. Despite being aware of these issues for several years, Tesla has allegedly continued to exaggerate its vehicles’ capabilities without adequately addressing the concerns or providing compensation.

Individuals who have purchased or leased a Model 3 or Model Y equipped with Tesla Vision, a camera-based system designed to assist with automated driving, since May 2021 are eligible to participate in the class action.

Litigation funder Woodsford is financially supporting the lawsuit on a “no win, no fee” basis. Should the case be successful, Woodsford will be entitled to reimbursement of the costs of the class action plus a commission from the judgment or settlement amount, pursuant to the terms of the funding agreement.

For further information regarding the lawsuit, please visit teslaaction.com.