Tesla withdraws from the Federal Chamber of Automotive Industries, citing allegations of misleading customers regarding the CO2 scheme.

Electric vehicle (EV) manufacturer Tesla has opted to withdraw from the nation’s automotive lobby, alleging deception of consumers regarding the government’s proposed CO2 scheme for the industry.

In a communication addressed to the Federal Chamber of Automotive Industries (FCAI), Tesla announced its decision to terminate its membership in July due to what it described as “demonstrably false” assertions regarding the New Vehicle Efficiency Scheme (NVES), claiming it would escalate car prices.

Expressing concerns over potential consumer deception, Tesla criticized the FCAI for preempting or coordinating responses to environmental regulations like the NVES among competitor brands.

Reports indicate that Polestar is also contemplating severing ties with the car lobby.

The FCAI, representing car manufacturers in Australia, has faced calls from Tesla to rectify its claims and cease speculation on how car brands might adjust pricing in response to the government’s proposed CO2 scheme.

Tesla has additionally brought the matter to the attention of competition regulators, citing concerns of potential coordination among competitor brands regarding pricing adjustments.

While the FCAI has asserted that the NVES could lead to significant price hikes for certain models, environmental groups have challenged these assertions, accusing the car lobby of presenting misleading data.

In a statement, the FCAI emphasized its obligation to act in the interests of the Australian automotive industry and consumers, advocating for an ambitious vehicle efficiency standard that balances emission reduction with affordability and accessibility to low and no-emission vehicles.

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