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Tesla Australia quits FCAI over claims that group is misleading consumers

(Credit: Esther Kokkelman)

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Tesla Australia has announced its intentions to quit the Federal Chamber of Automotive Industries (FCAI), the principal organization representing car companies in the country, over claims that the group was misleading consumers. Tesla is an active member of FCAI and is represented on its board, but as per a letter to the group, the EV maker noted that it would cease to become a member at the end of the 23/24 financial year.

In a letter to the FCAI, Tesla cited concerns about “false and misleading” claims that were made by the lobby group. The letter elaborated on Tesla’s belief that the FCAI had misled consumers about potential price increases associated with the New Vehicle Efficiency Scheme (NVES).

“Over the past three weeks, Tesla considers that the FCAI has repeatedly made claims that are demonstrably false. Tesla is concerned that the FCAI has engaged in behaviors that are likely to mislead or deceive Australian consumers. Tesla is also concerned that it is inappropriate for the FCAI to foreshadow or coordinate whether and how competitor brands implement price changes in response to environmental regulations such as the NVES,” Tesla wrote in its letter. 

The FCAI has claimed that the NVES could lead to price hikes for some models, a sentiment that has been reflected in media reports. At the same time, graphics from media reports claimed that popular electric cars like the Tesla Model Y crossover and Tesla Model 3 sedan would see adjusted prices. Tesla noted in its letter that this was simply untrue. 

Apart from its criticism regarding the FCAI’s alleged false claims on vehicle prices, Tesla also noted that the group had been cherry-picking data to paint a narrative and that it was misrepresenting how standards work. Overall, Tesla noted that it is uncomfortable with the FCAI’s recent initiatives and thus will depart from the group. 

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“As an industry association, the FCAI should be careful to not facilitate coordination among competitor companies about how they change prices or supply in response to regulations. Any impacts of NVES on vehicle prices – both up and down – are subject to complex competition and trade between competitors in both the vehicle market and the regulatory credit market. 

“Companies have several options in responding to the NVES, including adjusting product mix, adjusting volume, carrying debits and credits over several years, and negotiating trade of regulatory credits. When the FCAI makes blanket claims about how its members will change product prices, it risks facilitating or creating the impression of anti-competitive behavior. It is up to individual companies to set prices, and it is inappropriate for the FCAI to tell companies in private meetings or public commentary what any price changes will or should be or to suggest that these price changes are fixed and uniform,” Tesla wrote. 

Tesla’s letter to the FCAI can be viewed below. 

Tesla to FCAI 7 March by Simon Alvarez on Scribd

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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WATCH: SpaceX Starship Flight 10 launch

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Credit: SpaceX

SpaceX is set to launch its tenth test flight of the Starship program, with a launch window that will open at 6:44 p.m. local time, or 7:44 p.m. on the East Coast.

Starship’s tenth test flight was originally scheduled for launch yesterday with a one-hour window that opened at 7:30 p.m. ET, but it was called off 17 minutes before that window even had a chance to open.

Starship Flight 10 rescheduled as SpaceX targets Monday launch

SpaceX moved the flight to tonight. It was also originally scheduled to have a launch window at the same time as Sunday, but it was pushed back 14 minutes to around 6:30 p.m. ET. There are storms in the area, as well as clouds over Starbase, so there is the off chance for another launch delay.

There are several big objectives for this launch, including the expansion of the operating envelope for the Super Heavy booster. SpaceX says there are “multiple landing burn tests planned.”

The booster will also be performing a few in-flight experiments to help with data collection. Specifically, real-world performance data on future flight profiles and off-nominal scenarios will be on the list of things SpaceX will be looking for.

Starship itself will have a few in-flight objectives that include the deployment of eight Starlink simulators that are similar in size to the next-gen satellites for the internet service. SpaceX was set to test this with Starship’s seventh test flight, which occurred in January 2025. However, the task was abandoned as the vehicle was destroyed before deployment could occur.

Liftoff conditions are currently looking favorable, and SpaceX will be eager to improve upon its Starship launch program as CEO Elon Musk has big plans for it in the coming years.

You can watch the launch below via SpaceFlight Now:

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Tesla looks to expand Robotaxi geofence once again with testing in new area

It looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.

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Credit: Joe Tegtmeyer | X

Tesla looks to be preparing for the potential expansion of the Robotaxi geofence once again, as the company was spotted testing the suite in an area well outside of the Austin service area.

After it first launched the Robotaxi platform on June 22, Tesla has managed to expand its geofence twice, essentially doubling the travel area both times.

The most recent expansion took the size of the geofence from 42 square miles to about 80 square miles, bringing new neighborhoods and regions of the city into the realm of where the driverless vehicles could take passengers.

However, it looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.

Over the weekend, one fan noticed a Robotaxi validation vehicle testing in Bee Cave, Texas, which is roughly 25 minutes from the edge of the current geofence:

Tesla has been testing vehicles in the western suburbs of Austin for some time, and it seems the company is laying some groundwork to push its geofence expansion into Plaid Mode as competition with Waymo continues to be at the forefront of the conversation.

Waymo has been expanding with Tesla for some time, as the pace of expansion for the two companies has been relatively accelerated for the past couple of months.

Tesla’s expansions of the geofence sent a clear message to competitors and doubters, but it is still aiming to keep things safe and not push the envelope too quickly.

The geofence expansion is impressive, but Tesla is also focusing on expanding its vehicle fleet in both Austin and the Bay Area, where it launched a ride-hailing service in July.

Tesla Bay Area autonomous fleet to grow to over 100 units: Elon Musk

Still, safety is the priority at the current time.

“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.

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Tesla considers making a big move with Model Y pricing as demand is skyrocketing

“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”

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Credit: Tesla

Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.

With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.

The IRS recently adjusted the EV tax credit’s rules slightly.

Tesla set to win big after IRS adjusts EV tax credit rules

Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.

However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.

Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.

However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:

The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.

The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.

However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.

Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.

It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.

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