Tesla hit with Australian class action over ‘phantom braking’

Brisbane-based law firm JGA Saddler has filed a class action against Tesla, alleging that Australian drivers have been put at risk by the cars’ controversial semi-autonomous driving modes.

Specifically, the case calls out instances of “phantom braking”, in which the car dramatically decelerates as though in an emergency when no danger is present.

A new class action alleges Tesla has been dishonest about its cars’ capabilities.Credit: Bloomberg

“Imagine driving down the motorway in your high-tech electronic vehicle with cruise control, or so-called Autopilot, engaged, and it applies the brakes for no apparent reason,” JGA Saddler director Rebecca Jancauskas said.

“This dangerous phenomenon would terrify you and your passengers and could, if it causes an accident, result in serious injury and/or death.”

The firm also said the cars can fail to reach even 75 per cent of their advertised range, and that customers had paid more than $5000 for premium automated features that had not been delivered.

“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.

“It is hoped this claim underscores the importance for all EV manufacturers to be truthful in their marketing, deliver on their promises, and ensure their products are safe and reliable.”

Any Australian who bought or leased a Model Y or Model 3 manufactured from 2021 onwards is eligible to apply. Data from the Federal Chamber of Automotive Industries and the Electric Vehicle Council indicates that Tesla sold more than 100,000 vehicles direct to Australians between 2021 and 2024 inclusive.

The action comes at a time when Tesla has been swept up in the increasingly negative perception of its chief executive Elon Musk, also the world’s most wealthy person, who has been accused of assisting US President Donald Trump dismantle the nation’s government and regulatory system. Bumper stickers have appeared explaining that owners regret supporting the billionaire, while some high-profile Tesla owners have switched to other brands.

Tesla has been swept up in the increasingly negative perception of its chief executive Elon Musk.

Teslas are the most popular plug-in battery-powered cars in Australia, but they’ve faced constant controversy around Autopilot, culminating in the recall of more than 2 million vehicles in 2023 after a US safety agency deemed the system hazardous.

Tesla vehicles come with “Basic Autopilot”, which will control steering within a lane and hold a speed while monitoring traffic and applying brakes as needed. This is the feature allegedly at fault regarding “phantom braking”, which has been documented by Tesla users online since 2016.

In one example posted to YouTube last year from the United States, a Tesla travelling along a barren stretch of road with no other cars nearby appears to rapidly apply the brakes on its own, lowering speed from 112km per hour to 72km per hour in around five seconds. There are many less extreme examples posted as recently as this month.

A legal complaint was first lodged about this issue in the US in 2022, eventually becoming a class action that alleged Tesla knew about but obscured the problem, resulting in raised insurance premiums when cars recorded false proximity warnings. Tesla applied to have the case thrown out, but in December last year a judge ruled it could go ahead with modifications. Specifically, the claim that Tesla concealed the phantom braking defect is still set to be tested in court.

Tesla also offers additional autonomous features for an extra cost when you purchase a car, but many of the features are not active and are awaiting development or regulatory approval. In Australia, you can pay $5100 for “Enhanced Autopilot” which includes autonomous parking and may in the future include the ability to summon the car to your location. For $10,100 you can get “Full Self-Driving”, which may in the future operate the car with minimal driver input.

While Tesla advertises its range estimates with many caveats, the new class action alleges they are systematically overstated. A Reuters report in 2023 found that complaints about range were so numerous that Tesla established a “diversion team” specifically to cancel range-related service appointments so it wouldn’t be overwhelmed.

Tesla has been approached for comment.

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