- Thousands of Tesla owners in Australia have joined a class action over allegedly false claims about the company’s “Full Self-Driving” technology.
The case adds to a growing list of global lawsuits accusing Tesla of overstating the capabilities of its driver-assistance systems.
Regulators and courts worldwide are scrutinizing Tesla’s Autopilot and FSD marketing amid safety and transparency concerns.
Tesla is facing new legal pressure as thousands of Australian owners join a class action lawsuit accusing the automaker of misleading marketing about its “Full Self-Driving” (FSD) system.
The suit alleges Tesla exaggerated the capabilities of its advanced driver assistance systems—Autopilot and Full Self-Driving—by suggesting they could eventually enable fully autonomous operation.
Law firm Shine Lawyers, which represents affected drivers, told News Corp Australia that “thousands of Australians” have signed on, claiming Tesla misrepresented the vehicles’ safety and features.
Hardware limitations at the core of global challenges
At issue is Tesla’s Hardware 3 (HW3) computer, introduced in 2019, which CEO Elon Musk has since admitted is not capable of unsupervised self-driving.
Tesla claimed in 2016 that all vehicles produced from that point forward would have “all the hardware for full self-driving.” Musk later promised retrofits for earlier buyers—but no widespread upgrade or software fix has materialized.
Courts have already allowed similar class actions to proceed in the United States, and a comparable lawsuit was filed in China earlier this year.
What the Australian lawsuit seeks
The Australian class action covers Model 3 and Model Y owners who bought or leased their cars between May 2021 and February 2025. Plaintiffs are seeking financial compensation for what they say were misleading claims about self-driving performance and safety.
“Tesla made promises about their vehicles’ safety, performance and features such as their ‘Full Self-Driving,’ but we have found a lot of these promises are falling flat,” said Rebecca Jancauskas, a director at the firm leading the case.
Consumer advocates say the lawsuits highlight the risks of over-promising emerging technology. While Tesla markets FSD as a cutting-edge feature, regulators have warned that drivers must remain fully engaged behind the wheel.
Even owners who did not purchase the FSD package could see their vehicles’ value affected if promised capabilities never arrive.
What consumers can do
Verify claims: Review official documentation and fine print before purchasing software upgrades or optional packages.
Stay alert: Advanced systems like Autopilot and FSD still require driver supervision.
Document issues: Keep records of all service visits and software updates in case of future claims or settlements.