US carmaker Tesla has spectacularly resigned from Australia’s top automotive body, claiming the group is spreading “false and misleading” information about vehicle efficiency standards that could harm the industry.
The electric car giant also referred claims from the Federal Chamber of Automotive Industries (FCAI) to Australia’s competition watchdog on Thursday, asking it to consider whether the group was deliberately trying to mislead consumers.
The letter follows more than a month of debate over the federal government’s proposed New Vehicle Efficiency Standard, which would cap emissions from carmakers’ fleets to encourage them to bring more efficient vehicles to Australia.
However, the chamber said in a statement that it could not support a standard that had the potential to raise prices for some vehicles and was supposed to represent the needs of more than 50 brands other than Tesla.
US carmaker Tesla has spectacularly resigned from Australia’s premier automotive body, claiming the group spreads ‘false and misleading’ information
In a letter to FCAI Chief Executive Tony Weber, Tesla said it had “serious concerns about false and misleading public comments” from the organization, particularly about the price impact of efficiency standards.
“Over the past three weeks, Tesla believes that the FCAI has repeatedly made claims that are demonstrably false,” the letter said.
“Tesla is concerned that the FCAI has engaged in conduct that is likely to mislead or defraud Australian consumers.”
The car brand said it had referred some FCAI statements to the Australian Competition and Consumer Commission and planned to exit the organization at the end of the financial year.
Examples of misleading statements Tesla cited in the letter included claims that the price of gasoline and diesel vehicles would increase after a fuel efficiency standard and that the price of electric cars would decrease.
In a letter to FCAI CEO Tony Weber, Tesla said it had “serious concerns about false and misleading public comments” from the organization.
“If consumers believe the FCAI’s false claims that electric vehicles will drop in price by as much as 25 percent next year, many will conclude that they should not buy one now either,” the letter said.
In a statement issued Thursday afternoon, the FCAI confirmed that Tesla had canceled its membership, but said the group represented more than 50 car brands with more than 350 vehicle models and that “only two are Teslas.”
The FCAI confirmed that it did not support the proposed fuel efficiency standard, even though it had lobbied for an emissions cap.
‘FCAI cannot support a standard that could meet the needs and wallets of those at the more expensive end of the market in the short term, while potentially harming businesses and households who may be forced to cope with less choice and higher prices the next time they buy a product. new car,” it said.
Energy Minister Chris Bowen said he welcomed Tesla’s position and urged the transport sector to be more transparent.
Energy Minister Chris Bowen said he welcomed Tesla’s position and urged the transport sector to be more transparent
“I welcome the support from Hyundai, Kia, Volkswagen and others, and of course from the largest car groups NRMA, RACQ and RACWA,” he said on Thursday.
“It is the duty of everyone, everyone in the debate, to provide full facts, real facts and truthful facts.”
Electric Vehicle Council CEO Behyad Jafari said fuel efficiency standards in other countries, which have been shown to reduce emissions and increase access to more efficient vehicles, have also led to “scare campaigns.”
“It is one thing for companies to represent their own interests and profits, but when that results in the deliberate spreading of disinformation, it is important that it is reported,” he said.
Tesla’s announcement comes days after public consultation on the New Vehicle Efficiency Standard closed, with the federal government required to consult with industry before introducing a standard in January 2025.
The Coalition has opposed its introduction, with opposition transport spokeswoman Bridget McKenzie citing industry analysis that it could increase the price of some highly polluting vehicles by $25,000.
“A punitive tax is not the right way to push people towards electric cars, which are still not affordable or practical for many Australians,” she said.