Tesla has issued an open letter accusing Australia’s leading automotive lobby, the Federal Chamber of Automotive Industries (FCAI), of spreading false information regarding proposed regulations to cap fuel efficiency standards. The company announced its intention to exit the group in June, and Polestar is reportedly considering a similar course of action.
Australia currently lacks regulations mandating fuel efficiency standards, making it one of the few developed countries without such rules. The government’s recent announcement of plans to introduce regulations similar to those in the U.S. prompted the FCAI to claim that these rules would result in higher prices for consumers.
Tesla disputed this claim, citing examples from other countries where emissions regulations did not lead to price hikes. The company expressed concerns that the FCAI’s statements could influence consumer behavior and negatively impact electric vehicle (EV) sales in Australia before any regulations are implemented.
In its letter, Tesla also criticized the FCAI for suggesting how competitor brands should respond to environmental regulations in terms of pricing changes.
The FCAI’s stance has faced criticism not only from Tesla but also from environmental groups, which have called its claims “misleading.” However, the lobby group defended its position, stating that it is concerned about the aggressiveness of Australia’s proposed New Vehicle Efficiency Scheme and advocating for regulations that align with the needs and budgets of Australian consumers.
