Tesla cuts ties with Australian auto lobby over fuel standards dispute
![Tesla cuts ties with Australian auto lobby over fuel standards dispute](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/Depositphotos_74474779_S.jpg)
On Thursday, Tesla announced its decision to withdraw from Australia’s major auto lobby and resign from its board, alleging that the organization had misled consumers regarding the government’s proposed fuel efficiency standards and their potential influence on car prices.
In a letter addressed to Australia’s Federal Chamber of Automotive Industries (FCAI), Tesla said the country’s biggest auto industry body “has repeatedly made claims that are demonstrably false.”
“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,” Tesla said.
Australia was until recently the sole developed nation, aside from Russia, without existing or evolving fuel efficiency standards.
Also read: Tesla and popular EVs face stricter tax credit eligibility amid electric vehicle policy shift
The incumbent centre-left Labor government, victorious in 2022, intends to establish a fuel efficiency framework to cap the average carbon emissions from new vehicle sales starting next year.
This initiative might encourage manufacturers to introduce more electric vehicles (EVs) into Australia, fostering increased adoption and aligning the country with standards observed in most other developed economies.
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