Tesla faces legal action over Full Self-Driving sales in Australia
Tesla faces legal action in Australia from customers who claim they were charged over $10,000 for Full Self-Driving software that their vehicles could not fully utilize due to hardware limitations. Andy Young and other customers allege misleading conduct under Australian Consumer Law after purchasing the feature for older hardware versions with significantly reduced functionality.
What happened
Tesla charged Australian customers more than $10,000 for Full Self-Driving (FSD) software despite their vehicles having older hardware (HW3) that limited functionality compared to newer hardware (HW4).
Andy Young purchased lifetime FSD access for $10,100 with his Model 3 in December 2021 but claims Tesla failed to supply the FSD feature in the subsequent four years and that the product was not fit for its intended purpose.
Reported impact
Customers with HW3 vehicles who paid the same price as HW4 owners report only slightly enhanced automated features such as automatic lane changing and automatic parking, whereas FSD in more modern Tesla models can perform almost all driving manoeuvres.
Andy Young is seeking a refund of $10,100 and an additional $3,530 in NSW EV stamp duty.
Index analysis
FSD mode became available for certain newer Model 3 and Y Tesla owners in Australia in September, allowing those who pay $149 a month or a one-off fee of $10,100 to activate the feature.
Governance controls
Andy Young has lodged a claim at the NSW Civil and Administrative Tribunal, alleging Tesla breached Australian Consumer Law by engaging in misleading or deceptive conduct.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.