US carmaker Tesla has spectacularly resigned from Australia’s top motoring organisation, alleging the group is spreading “false and misleading” information about vehicle efficiency standards that could harm the industry.
The electric vehicle giant also referred complaints from the Federal Chamber of Automotive Industries (FCAI) to Australia’s competition watchdog on Thursday, asking it to consider whether the group was deliberately seeking to mislead consumers.
The letter comes after more than a month of debate over the federal government’s proposed New Vehicle Efficiency Standard that would set a cap on 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 increase prices for some vehicles and needed to represent the needs of more than 50 brands besides Tesla.
US carmaker Tesla has spectacularly resigned from Australia’s leading motoring organisation, claiming the group is spreading “false and misleading” information.
In a letter to FCAI CEO Tony Weber, Tesla said it had “serious concerns about false and misleading public comments” made by the organization, particularly around the impact of efficiency standards on pricing.
“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 behavior that may mislead or deceive Australian consumers.”
The car brand said it had referred some FCAI statements to the Australian Competition and Consumer Commission and planned to resign from the organization at the end of the financial year.
Examples of misleading statements cited by Tesla in the letter included claims that the price of gasoline and diesel vehicles would rise after a fuel efficiency standard and that the price of electric cars would plummet.
In a letter to FCAI CEO Tony Weber, Tesla said it had “serious concerns about false and misleading public comments” made by the organization.
“If consumers believe FCAI’s false claims that electric vehicles are about to reduce in price by up to 25 percent next year, many will conclude that they should also avoid buying one now,” the letter said.
In a statement issued on Thursday afternoon, the FCAI confirmed that Tesla had resigned 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 it did not support the proposed fuel efficiency standard, even though it had been pushing for an emissions cap.
“The FCAI cannot support a standard that in the short term could meet the needs and pockets of those at the top end of the market while potentially harming businesses and families who could be forced to deal with fewer options.” and higher prices the next time they buy a new car,” he said.
Energy Minister Chris Bowen said he welcomed Tesla’s stance and urged the transport industry to be more transparent.
Energy Minister Chris Bowen welcomed Tesla’s stance and urged the transport industry to be more transparent.
“I appreciate the support of Hyundai, Kia, Volkswagen and others, as well as of course the major automotive groups NRMA, RACQ, RACWA,” he said on Thursday.
“It is the responsibility of everyone, of all participants in the debate, to provide complete facts, appropriate facts, truthful facts.”
Electric Vehicle Council chief executive Behyad Jafari said fuel efficiency standards in other countries that have been shown to reduce emissions and increase access to more efficient vehicles had also attracted “scare campaigns”.
“It’s one thing for companies to represent their own interests and profits, but when that turns into knowingly spreading misinformation, it’s important that it be reported,” he said.
Tesla’s announcement comes days after public consultation on the new vehicle efficiency standard closed, and the federal government will consult with the 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 vehicles that are still not affordable or practical for many Australians,” he said.