New Tesla Lawsuit Reveals Hidden Problems in Model 3 and Y

Tesla, the global leader in electric vehicles (EV) is set to face a significant legal challenge in Australia. A class action lawsuit has been filed against Tesla Motors Australia, alleging that the company misled customers about the capabilities of its vehicles, particularly regarding battery range and self-driving features. The lawsuit, organised by the law firm JGA Saddler and backed by litigation funder Woodsford, targets Tesla Model 3 and Model Y vehicles equipped with Autopilot and Tesla Vision, manufactured from 2021 onwards.

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The Core Allegations Against Tesla

The lawsuit highlights three primary concerns that have frustrated Tesla owners across Australia:

1. Phantom Braking – A Safety Risk?

One of the most alarming allegations is that Tesla’s Autopilot system engages in “phantom braking” – a phenomenon where the car’s automatic emergency braking (AEB) activates without any clear hazard. Drivers have reported their vehicles suddenly braking on highways and open roads, creating a serious risk of rear-end collisions and potential injury. According to JGA Saddler’s director, Rebecca Jancauskas, this unexpected braking “would terrify you and your passengers and could, if it causes an accident, result in serious injury and/or death.”

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2. Overstated Driving Range

Tesla has long promoted its EVs as having industry-leading range capabilities. However, the lawsuit claims that many Model 3 and Model Y owners are unable to achieve anywhere close to the advertised driving range. The discrepancy is reportedly most noticeable when the battery level is above 50%, where the actual range falls far short of what is displayed on the dashboard. This issue is particularly concerning for EV owners who rely on their vehicle’s range for long-distance travel.

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3. Self-Driving Promises That Fell Short

One of Tesla’s biggest selling points is its advanced driver-assistance systems, marketed under Autopilot and Full Self-Driving (FSD). The lawsuit argues that the hardware on Tesla vehicles is incapable of supporting true autonomous driving, despite marketing that suggested otherwise. Many owners paid thousands of dollars for FSD features that have yet to be fully realised.

A Pattern of Scrutiny

This isn’t the first time Tesla has faced criticism over its Autopilot system. In 2020, Germany banned Tesla from using the term “Autopilot” in its marketing, arguing that it misled consumers into thinking the cars were more autonomous than they actually were. Similarly, in the United States, the National Highway Traffic Safety Administration (NHTSA) found that Autopilot was involved in at least 13 fatal crashes. Tesla has since renamed the system to "Full Self-Driving (Supervised)".

Tesla’s issues aren’t limited to software. The company has faced multiple large-scale recalls in the U.S. due to hardware defects:

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What This Means for Tesla Owners

The lawsuit allows Australian Tesla owners who purchased or leased a Model 3 or Model Y with Tesla Vision from May 2021 onwards to join the case. If successful, plaintiffs could receive compensation for their vehicles’ underperformance and safety concerns.

Litigation funder Woodsford is financially backing the lawsuit on a “no win, no fee” basis, meaning it will seek Federal Court approval to recoup legal costs and claim a portion of any financial settlement.

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Tesla’s Response? Silence.

Despite the growing legal pressure, Tesla has yet to issue a response to the class action lawsuit. Given the company’s history of addressing customer complaints through software updates and recall notices rather than public statements, it remains to be seen how they will approach this latest challenge.

The Bigger Picture for EV Enthusiasts

For those invested in the future of electric vehicles, this case higlights a key lesson: marketing claims need to align with real-world performance. Tesla remains a leader in the EV industry, but incidents like this highlight the importance of holding manufacturers accountable for their promises.

As EV technology evolves, transparency and reliability will be key in building long-term trust with consumers. Whether this lawsuit leads to significant changes or just another wave of controversy, it’s clear that Tesla’s ambitious vision for the future is now facing some serious legal roadblocks.