If you’re a Tesla owner in Australia, you might want to sit up and take notice.
A group of disgruntled Tesla owners has launched a class action against Elon Musk’s car manufacturer, claiming that the company sold vehicles with major defects.
The lawsuit targets the sales of Model 3 and Y cars, which have been hugely popular in Australia, accounting for over 40% of EV sales in 2024.
What’s Gone Wrong with Tesla’s Cars?
The class action, filed by Australian firm JGA Saddler, highlights three major issues with the Model 3 and Y cars:
- Phantom braking: a phenomenon where the vehicle’s emergency braking system kicks in for no reason, even when in cruise control. This can be terrifying for drivers and passengers, and potentially lead to serious accidents.
- Poor battery range: many Tesla owners have reported that their cars’ battery range is significantly less than what was advertised. Imagine paying a premium for a car that can’t deliver on its promised performance!
- Lack of autonomous driving: despite Tesla’s promises of “full self-driving” capabilities, many owners have found that this feature is not available or not functioning as expected.
Broken Promises: Tesla’s Advertising Under Scrutiny
According to JGA Saddler director Rebecca Jancauskas, Tesla made big promises about its vehicles’ safety, performance, and features, but these promises have fallen flat.
“Imagine your EV has never reached 75% of its advertised battery range, or the promised self-driving features… have never been delivered,” she said.
The class action alleges that Tesla continued to advertise its vehicles in Australia, even though it knew that many customers were experiencing these issues.
Who Can Join the Class Action?
If you purchased or leased a Model 3 or Y with Tesla Vision (a camera-based system that assists with automated driving) since May 2021, you may be eligible to join the class action.
The lawsuit is being financially backed by litigation funder Woodford on a ‘no win, no fee’ basis, so you won’t have to pay any legal costs unless the case is successful.
Tesla’s Troubles: A Global Issue?
This isn’t the first time Tesla has faced criticism over its vehicles’ safety and performance. In the US, the company has faced numerous recalls, including two major recalls in 2025 affecting over 600,000 vehicles.
With Australian owners now taking action, it’s clear that Tesla’s troubles are a global issue. Will Elon Musk’s company be able to address these concerns and regain the trust of its customers? Only time will tell.