When you spend more than $10,000 on a car feature, you expect it to work. But thousands of Australian Tesla owners are discovering that the company's much-vaunted 'Full Self-Driving' capability they paid handsomely for remains frustratingly out of reach—and now they're taking the electric car giant to court.
A Federal Court class action lawsuit has been launched against Tesla, with Brisbane law firm JGA Saddler representing what director Rebecca Jancauskas describes as 'thousands of Australians' who feel misled by the company's promises.
'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,' she told media.
'Owners forked out for upgrades and capabilities that simply have not been delivered,' Ms Jancauskas said, 'and Tesla’s marketing material did not align with the reality.'
The broken promise that started it all
The heart of this legal battle traces back to bold claims Tesla made starting in 2016. In a since-deleted blog post, the company declared that 'all Tesla vehicles produced in our factory—including Model 3—will have the hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver'.
The deleted post, once featured on Tesla’s official website, included screenshots showing a Model 3 under the headline 'All Tesla Cars Being Produced Now Have Full Self-Driving Hardware.
CEO Elon Musk reinforced this promise in 2019, claiming 'all Tesla cars being produced now have everything necessary for Full Self-Driving' and that they simply needed to 'improve the software.' The company even marketed vehicles with the promise that self-driving features were 'coming this year.'
But in 2025, Musk finally acknowledged during an earnings call that owners of older cars with third-generation 'HW3' hardware would require a complete hardware upgrade—a task he called 'painful and difficult.' For Australian customers who paid up to $10,100 for Full Self-Driving capabilities, this admission came years too late.
'Imagine your EV has never even reached 75 per cent of its advertised range, or the promised self-driving features, that you paid a premium of more than AUD 5000 for, have never been delivered.'
Three serious allegations
This isn't just about unfulfilled software promises. The class action targets three specific issues that directly impact driver safety and value:
Full Self-Driving failures: Customers who purchased or leased Tesla Model 3 or Y vehicles between May 2021 and February 2025 discovered that vehicles with HW3 hardware simply cannot access the Full Self-Driving (Supervised) service, despite paying thousands for it.
Phantom braking dangers: Tesla's Autopilot system engages in 'phantom braking'—where the car's automatic emergency braking activates without any clear hazard, with drivers reporting sudden braking on highways and open roads, creating serious risk of rear-end collisions.
Overstated range claims: The lawsuit challenges Tesla's range claims, alleging that the figures quoted by the company are systematically and consistently overstated.
Real stories from frustrated owners
The impact on Australian families has been significant. One member of a Facebook group for Australian Tesla owners took individual legal action after paying $10,100 for full self-driving which Tesla 'never delivered.'
Another owner, after clocking nearly 300,000 kilometres over four years, asked Tesla for a replacement car, having never been able to use the feature they paid extra for. An Australian user on the Tesla Motors Club forum shared their disappointment: 'really bummed that I had purchased FSD, waited for four years, and never got it before selling the car.'
Their legal letter to Tesla stated: 'it is plainly unreasonable that a customer should have to wait more than four years for a product it has already paid for to be supplied.'
Tesla's declining Australian performance
Despite maintaining 42 per cent of the Australian electric vehicle market, Tesla's sales dropped 17 per cent in 2024 and a concerning 33 per cent in the first month of 2025, suggesting growing consumer confidence issues.
Global pattern of problems
Australia isn't alone in facing these issues. So far in 2025, there have been two major recalls in the US, affecting more than 370,000 vehicles with power steering problems and about 239,000 vehicles with a rear-view camera issue that could increase the risk of collisions.
Source: NBC News / Youtube.
Owners in China and the US have also sued Tesla over misleading claims surrounding its software.
The US National Highway Traffic Safety Administration has opened 38 special cases related to Tesla's advanced driver assist features, 19 of those involved deaths. Similar lawsuits have been filed in China and the United States, suggesting these aren't isolated Australian problems but part of a global pattern.
What this means for you
If you purchased or leased a Tesla Model 3 or Model Y between May 2021 and February 2025, you might be eligible to join this class action. The good news for potential claimants is that the lawsuit is being financially backed by litigation funder Woodsford on a 'no win, no fee' basis, meaning if it's successful, legal costs will be recovered from any settlement.
Jancauskas explained the ideal outcome: 'a financial settlement that adequately compensates Australian consumers for what they thought they were getting, but haven't, in fact, received.'
Your consumer rights
- The lawsuit operates on a 'no win, no fee' basis
- Eligible vehicles: Model 3 and Y purchased/leased May 2021-February 2025
- Three main claims: unfulfilled FSD promises, phantom braking issues, overstated range
- You can register interest without upfront legal costs
Taking action
For seniors considering whether to join this class action, it's worth understanding that consumer protection laws in Australia are designed to protect buyers from misleading claims. The Australian Consumer Law requires that products and services match their descriptions and perform as advertised.
Tesla has not provided public comment on the lawsuit or communicated a clear plan for addressing the hardware upgrade issue in Australia. The company also hasn't clarified who would bear the cost of any required upgrades.
If you believe you've been affected by these issues, you can register your interest or seek more information by visiting the law firm's dedicated website at
www.teslaaction.com
. Remember, joining a class action doesn't require upfront payment of legal fees, making it accessible for retirees on fixed incomes.
The case highlights an important principle: when companies make bold promises to sell expensive products, they should be held accountable for delivering on those commitments, regardless of how challenging the technology might prove to be.
Have you experienced issues with your Tesla's promised features, or do you think companies should be held more accountable for their marketing claims? Share your thoughts below.
Primary Source
https://www.news.com.au/technology/...1b019c1aeece3914b74822fdb02037?from=rss-basic
Tesla hit by Australian class action over range and self driving claims, phantom braking
Cited text: “Tesla made promises about their vehicles’ safety, performance and features such as their ‘full self-driving,’ but it appears some of these promises a...
Excerpt: '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,'
https://thedriven.io/2025/02/26/tes...ange-and-self-driving-claims-phantom-braking/
Class action lawsuit launched against Tesla's Autopilot, Full Self-Driving claims | CarExpert
Cited text: The DMV says the company’s website promoted “short and long-distance trips with no action required by the person in the driver’s seat” while a later d...
Excerpt: 'all Tesla vehicles produced in our factory—including Model 3—will have the hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver'.
https://www.carexpert.com.au/car-ne...nst-teslas-autopilot-full-self-driving-claims
Tesla is hit with a fresh class action about its self-driving claims, hardware 3 computer | Electrek
Cited text: The firms are currently recruiting people who purchased or leased a Tesla Model 3 or Y vehicle in Australia between May 2021 and February 2025.
Excerpt: Customers who purchased or leased Tesla Model 3 or Y vehicles between May 2021 and February 2025
https://electrek.co/2025/02/27/tesl...-its-self-driving-claims-hardware-3-computer/
New Tesla Lawsuit Reveals Hidden Problems in Model 3 and Y
Cited text: One of the most alarming allegations is that Tesla’s Autopilot system engages in “phantom braking”—a phenomenon where the car’s automatic emergency ...
Excerpt: Tesla's Autopilot system engages in 'phantom braking'—where the car's automatic emergency braking activates without any clear hazard, with drivers reporting sudden braking on highways and open roads, creating serious risk of rear-end…
https://zecar.com/reviews/tesla-hit-by-australian-class-action-lawsuit
Tesla faces class action lawsuit in Australia | ICLG
Cited text: The lawsuit also challenges Tesla’s range claims, alleging that the figures quoted by the company are systematically and consistently overstated.
Excerpt: The lawsuit challenges Tesla's range claims, alleging that the figures quoted by the company are systematically and consistently overstated.
https://iclg.com/news/22317-tesla-faces-class-action-lawsuit-in-australia
Tesla hit by Australian class action over range and self driving claims, phantom braking
Cited text: So far in 2025, there have been two major recalls in the US, affecting more than 370,000 vehicles with power steering problems and about 239,000 vehic...
Excerpt: So far in 2025, there have been two major recalls in the US, affecting more than 370,000 vehicles with power steering problems and about 239,000 vehicles with a rear-view camera issue that could increase the risk of collisions.
https://thedriven.io/2025/02/26/tes...ange-and-self-driving-claims-phantom-braking/
Class action lawsuit launched against Tesla's Autopilot, Full Self-Driving claims | CarExpert
Cited text: To date the US National Highway Traffic Safety Administration (NHTSA) has opened 38 special cases related to Tesla’s advanced driver assist features, ...
Excerpt: The US National Highway Traffic Safety Administration has opened 38 special cases related to Tesla's advanced driver assist features, 19 of those involved deaths.
https://www.carexpert.com.au/car-ne...nst-teslas-autopilot-full-self-driving-claims
Tesla hit by Australian class action over range and self driving claims, phantom braking
Cited text: The lawsuit is being financially backed by litigation funder Woodsford on a “no win, no fee” basis. If it is successful, Woodsford will apply for Fede...
Excerpt: the lawsuit is being financially backed by litigation funder Woodsford on a 'no win, no fee' basis, meaning if it's successful, legal costs will be recovered from any settlement.
https://thedriven.io/2025/02/26/tes...ange-and-self-driving-claims-phantom-braking/
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