Tesla FSD rollout in Australia draws safety warnings despite unfulfilled promises
Tesla rolled out its Full Self-Driving system in Australia in September 2025 to over 50,000 owners, but government regulators privately warned drivers the system could cause overreliance despite requiring constant human monitoring. A video showed FSD nearly causing a crash, and Tesla continues pushing for European approval against cautious regulatory resistance.
What happened
Tesla rolled out its Full Self-Driving (FSD) system in Australia in early September 2025, making it available to more than 50,000 Tesla owners. Despite this, Tesla has spent nearly a year pushing for European approval of FSD, engaging in intensive meetings with the Dutch regulator (RDW) starting in October 2024, with internal emails showing Tesla employees expressing impatience with the extensive testing required.
A video posted on social media on September 1, 2025, showed a Tesla with FSD activated heading straight toward construction barriers, requiring driver intervention to avoid a crash. Tesla markets FSD with language suggesting autonomy, though the system still requires a licensed driver to monitor constantly and remain ready to take control at all times.
Reported impact
Queensland's Department of Transport and Main Roads privately warned owners in April 2025 that FSD could cause motorists to become 'complacent' while still being held fully accountable for crashes. Government officials have characterized the system as 'extremely advanced' and cautioned that drivers must always monitor their vehicle and remain prepared to take control.
Index analysis
The incident reflects a broader mismatch between Tesla's marketing of FSD as near-autonomous technology and the system's actual capabilities, which require continuous human oversight. The rollout in Australia proceeded despite no dedicated regulatory approval process for self-driving technology in that country, contrasting with the more cautious European regulatory approach Tesla has encountered.
Governance controls
Tesla and the RDW held weekly meetings from October 2024 onward, with the regulator approving nine vehicles for testing in the Netherlands as of December 2024. However, Tesla expressed frustration with the pace of European regulatory review, calling approval 'mission critical' for company leadership in internal communications to the RDW.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.