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Tesla facing class action over ‘phantom braking’
Disappointed Australian Tesla owners have initiated a class action against Elon Musk’s company, alleging that Tesla marketed and sold motor vehicles that it was aware were defective.
Grace Robbie
Elon Musk’s Tesla has been hit with class action proceedings, accusing the trillion-dollar enterprise of selling vehicles with significant defects while also misrepresenting the capabilities of its vehicles, particularly concerning automation and driving range promises.
The lawsuit, filed in the Federal Court of Australia by boutique class action firm JGA Saddler and supported by global litigation funder Woodsford, targets Tesla’s Model 3 and Y cars, which emerged as the two best-selling electric vehicles in the local market last year.
The central focus of the claim revolves around three primary concerns regarding the occurrence of hazardous “phantom braking”, the misleading estimates of battery range, and the unfulfilled promises related to self-driving capabilities.
Rebecca Jancauskas, director at JGA Saddler, emphasised the gravity of these allegations, urging that Tesla be “held to account” for the discrepancies between its claims and the actual performance of its cars.
“Imagine driving down the motorway in your high-tech electronic vehicle (EV) with cruise control, or so-called Autopilot, engaged, and it applies the brakes for no apparent reason,” Jancauskas said.
“This dangerous phenomenon, known as ‘phantom braking’, would terrify you and your passengers and could, if it causes an accident, result in serious injury and/or death.”
“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 $5,000 for, have never been delivered. For many Tesla drivers, these issues are their daily reality.”
The lawsuit further alleges that Tesla “had known about a variety of [the] defects” but yet failed to take “sufficient action” to resolve them or “compensate” affected customers.
“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,” Jancauskas said.
This legal action follows a special report conducted by Reuters in July 2023, in which the organisation examined Tesla’s measures to mitigate complaints regarding the “optimistic [driving] range estimates” of its electric vehicles.
David Haughan, an investment officer at Woodsford, expressed his concerns regarding Australian Tesla drivers who, in his view, have not received the value for which they paid by purchasing vehicles based on commitments that were ultimately not fulfilled.
“Tesla customers have not got what they paid for. They were sold a car based on promises about the vehicles’ self-driving capabilities, battery range, and safety features, and Tesla has not delivered. Far too many customers have experienced dangerous ‘phantom braking’ incidents,” said Haughan.
Haughan also asserted how “Tesla should take this opportunity to repair its relationship with its customers”.
