Tesla has strongly criticized the primary automotive industry organization in Australia, accusing them of trying to hinder progress on climate change by continuously making misleading statements to the public about a clean car policy proposed by the Albanese government.

Tesla strongly criticized the Federal Chamber of Automotive Industries (FCAI) in their submission to the government regarding the design of a vehicle efficiency standard. Despite being an active member and holding a board seat in the organization, Tesla expressed their disagreement with the FCAI’s stance.

“The Australian division of Elon Musk’s electric vehicle corporation stated that the advocacy organization has been engaging in a coordinated effort to publicly oppose the government’s proposal. This includes making claims to various media sources that the plan could potentially raise the cost of popular utility vehicles by $13,000, despite being aware that this is not how the system functions.”

Tesla stated that the FCAI aimed to express the opinions of all its members. However, on this matter, it only represented a specific group within the industry – those companies that choose to prolong taking action against the climate crisis. Tesla also noted that the FCAI’s stance was not in line with the declared promises of multiple members like Ford, Jaguar Land Rover, Volvo, and Mercedes-Benz, who have committed to discontinuing the sale of combustion engine models in major markets by 2035.

Tesla stated that the FCAI’s stance is advocating for a policy system that is largely ineffective, relying on a voluntary program that the FCAI is responsible for. While the organization has portrayed their plan as ambitious, Tesla revealed that the topic has been openly debated within the FCAI and it will not have a significant impact on reducing emissions until 2030.

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The FCAI’s recommended method is predicted to cause a 25% rise in vehicle emissions from 2024 to 2030. The organization disclosed that it had presented this calculation to the FCAI prior to submitting it and inquired if there were any factors that had been overlooked. The FCAI’s response was allegedly, “You have not taken the review process into account.”

Tesla interpreted this as the FCAI’s acknowledgment that their proposed model would result in increased emissions, but that they were open to making changes in the future.

According to Tesla, the FCAI was aware that their goals would essentially permit car manufacturers to produce more emissions due to significant loopholes that result in the creation of numerous electric vehicles that only exist theoretically.

“Tesla is both a member of the FCAI and represented on its board, so it’s important that Tesla makes clear its disagreement with the submission made by the FCAI to this review, and with false claims it has made in the public discussion of vehicle standards.”

The Federal Coalition has adopted the FCAI’s assertion that the cost of the most commonly purchased gasoline and diesel cars will increase by several thousand dollars under the government’s proposal, labeling it a “tax on family cars and utility vehicles”.

This is not a tax, but a requirement for car manufacturers to meet an emissions goal of a certain amount per kilometer, based on the average of all new cars sold in a given year.

Each year, the target will decrease. By 2030, the government plans to reduce it by 60% according to their favored approach. While suppliers have the freedom to select which cars they sell, they must also provide a sufficient number of fuel-efficient models to balance out the impact of more polluting vehicles and meet the target.

Firms with emissions below the set average will receive credits that can be sold to vehicles with higher emissions. Those who fail to meet the average can either pay a fine or offset the difference by selling more environmentally-friendly cars within the next two years.

When questioned about Tesla’s criticisms, the FCAI stated that they have been advocating for government leaders to implement an efficiency requirement for over ten years.

According to a spokesperson from the FCAI, the organization and its members, who produce a variety of vehicles including electric, gasoline, and diesel, are committed to fighting climate change and providing accessible zero and low emission options for Australians. These vehicles are designed to meet the needs of individuals and families for transportation in various aspects of their lives, whether it be for personal, recreational, or work purposes.

Tesla provided feedback on the FCAI’s computations, which were shared with various media sources such as News.com.au, the Daily Mail, and Channel 9’s Today Show. The FCAI’s data indicated that the government’s favored design for efficiency standards could significantly increase the cost of 18 out of the top 20 car models in the country. Tesla noted that the FCAI had:

• Based its calculations on the most polluting type of each car model only. For example, when looking at the Ford Ranger it chose only its most polluting variant, the Raptor, which emits 262 grams of CO₂

  The government’s Green Vehicle Guide from last year displayed 42 different types of Ranger, with 20 of them emitting less than 200g/km per kilometre.

• Incorrectly portrayed the functionality of an efficiency standard. It selected the most environmentally harmful versions of every car brand, computed the amount they would exceed the permitted average emissions, multiplied it by $100/g – the suggested penalty cost – and included this value in the car’s listed price. In actuality, penalties would not be enforced on individual cars and manufacturers would be required to expand their selection of eco-friendly vehicles to compensate for the presence of more polluting models.

• Without confirming with the company, it was stated that the price of two widely-recognized Tesla electric vehicle models would decrease by approximately $15,000 in the upcoming year.

Tesla stated that the statement made by FCAI regarding a potential $15,000 reduction in car prices was unfounded and made without verification from the actual car manufacturers who determine pricing.

The FCAI reaffirmed its assessment of the potential impact of the government’s preferred policy on vehicle sales in 2023, assuming that last year’s sales trends were to continue until 2025.

The government has announced its intent to implement a vehicle efficiency standard starting on January 1st of next year.

Source: theguardian.com