Electric carmaker Tesla has pulled out of Australia’s peak automotive body, the Federal Chamber of Automotive Industries (FCAI), accusing the group of misleading the public about the government’s proposed fuel efficiency standards.
In a letter to the FCAI, Tesla claimed the organisation had made “demonstrably false” statements regarding the potential impact of the standards on car prices. They further expressed concern that the FCAI was inappropriately coordinating potential price changes among member companies in response to environmental regulations.

This move comes amidst the Australian government’s plan to introduce mandatory fuel efficiency standards for new vehicles starting next year. Australia is currently one of the few developed nations without such regulations, and the new policy aims to curb carbon emissions in the transportation sector.
The FCAI, which represents major car manufacturers primarily focused on traditional gasoline-powered vehicles, has been critical of the proposed standards, labelling them “extremely aggressive” and expressing concerns about potential price hikes for consumers.
Tesla, on the other hand, views the regulations as a positive step towards a cleaner future. Their decision to leave the FCAI highlights the stark difference in perspectives within the automotive industry regarding the transition towards sustainable transportation.
While the FCAI has not yet responded to Tesla’s accusations, the electric carmaker has reportedly requested an investigation by Australia’s competition regulator into the group’s statements.
This development underscores the growing tension within the Australian automotive industry as the nation grapples with environmental concerns and the need to adapt to a changing global landscape.
