Tesla's recent demonstration of its self-driving technology in Melbourne's central business district was not authorized by the Victorian government. A video shared on social media in May showed a Tesla vehicle navigating busy streets autonomously, with the driver’s hands off the steering wheel. The post claimed the car successfully handled one of Melbourne's challenging hook turns.

Under Victorian law, testing automated vehicles requires a special permit to ensure safety during on-road trials. However, the Victorian government stated that the Department of Transport and Planning has not approved any testing of fully autonomous vehicles in the CBD and will continue discussions with Tesla.

Michael Milford, director of the QUT Centre for Robotics, expressed concern over the footage. "They had the vehicle moving around in very close proximity to very large numbers of members of the public," he said. "And for such a test to go forward, you would definitely want full approval and endorsement from the relevant authorities."

Tesla's Full Self-Driving (FSD) feature is part of the company's vision for a fully autonomous future. According to Tesla's website, when enabled, the vehicle can drive almost anywhere with minimal driver intervention. FSD is currently available in the U.S., Canada, China, Mexico, and Puerto Rico, with plans to launch in Australia and New Zealand soon. Tesla emphasizes that the driver must maintain control of the vehicle at all times.

Milford noted, "That driver, even paying attention, is only capable of intervening in a certain subset of situations. If the car had gone out of control in close proximity to those people, the driver would have had almost no chance of intervening quickly enough to prevent a major tragedy."

In a separate event, Tesla showcased its self-driving system to media and influencers in Brisbane. Videos from last month depicted reviewers sitting in the driver's seat without their hands on the steering wheel while driving through suburban areas. The Queensland Transport Department clarified that there was no requirement for Tesla to apply for a permit in that state, although drivers must keep at least one hand on the steering wheel.

Tesla is currently facing a class action lawsuit in the Federal Court over allegations of sudden, unexplained braking, known as phantom braking. The lead plaintiff reported experiencing several alarming incidents where the vehicle abruptly decelerated while traveling at speeds up to 100 kilometers per hour.

In court documents, Tesla strongly denied claims that its Model 3 and Model Y vehicles, built after 2021, are defective or unsafe. The company stated that the owner's manual warns drivers that various factors can influence the performance of Automatic Emergency Braking, potentially leading to inappropriate or untimely braking. These factors include obstructions to the cameras, weather conditions, and nearby vehicles.

Milford raised concerns about the implications of relying solely on cameras for autonomous driving. "Tesla is very well known for relying almost entirely on cameras in their autonomous vehicles, whereas other companies have typically used range sensors like LiDAR," he said. He noted that camera sensitivity to environmental factors, such as shadows, could lead to unnecessary braking.

In the U.S., Tesla has faced multiple lawsuits related to its autopilot system, with claims that it contributed to fatal crashes. Investigative journalist Sonke Iwersen highlighted the struggles families of crash victims face in obtaining onboard data from Tesla. "These people are really angry, something is missing in their lives and they can't find, in their view, closure, until they know exactly what happened," he said.

In late 2022, a former Tesla employee leaked 23,000 documents revealing numerous customer complaints about the autopilot system. Iwersen argued that Tesla should be held to the same standards as other car manufacturers, emphasizing the need for accountability and responsibility.