Tesla announced on Thursday its decision to withdraw from Australia’s main auto lobby and resign from its board, citing the organization’s alleged dissemination of misinformation regarding the government’s proposed fuel efficiency standards and their potential impact on car prices.
In a letter directed to Australia’s Federal Chamber of Automotive Industries (FCAI), Tesla accused the country’s largest auto industry body of repeatedly making false claims. The U.S. electric vehicle market leader also expressed concern over the FCAI’s involvement in forecasting or coordinating competitor brands’ responses to environmental regulations.
Tesla disclosed that it has urged Australia’s competition regulator to investigate the comments made by the FCAI. The FCAI, which comprises top executives of major car brands, has not yet responded to requests for comment. Tesla indicated its intention to terminate its membership with the FCAI in June.
Until recently, Australia stood as the sole developed nation, aside from Russia, without existing or developing fuel efficiency standards.
The current center-left Labor government, in power since 2022, aims to introduce a fuel efficiency model to regulate the average carbon emissions of new vehicles sold from next year. This move could incentivize manufacturers to introduce more electric vehicles (EVs) to Australia, aligning the country with standards adopted by most other developed economies.
On Wednesday, the FCAI criticized the government’s decision to enforce fuel efficiency standards with “extremely aggressive targets and severe penalties on very short notice” starting from January 1, 2025. The FCAI warned that this could disrupt large segments of the industry, resulting in reduced choices and higher prices for consumers. The government has concluded consultations on its preferred model and is preparing to introduce legislation later this year.
