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Tesla’s self-driving mode is coming to Australia amid controversy – but it won’t create true driverless cars

  • Written by: Hussein Dia, Professor of Transport Technology and Sustainability, Swinburne University of Technology

Tesla is expected to soon turn on its “Full Self-Driving (Supervised)[1]” (FSD) mode in Australia and New Zealand[2].

Is a future of driverless cars upon us? Not exactly – it’s essentially more advanced driver assistance. Legally, Tesla drivers using this mode must be ready to take control and pay attention at all times. Calling it “full self-driving” is questionable.

The move comes amid scrutiny. This week, a video showed a Tesla navigating roads in Melbourne’s CBD without the driver’s hands on the wheel. Authorities warned these trials had not been approved[3].

It’s a reminder of how contested “self-driving” remains. While the technology[4] is advancing rapidly, there are still real concerns over regulations[5], technological readiness[6], safety[7] and public trust[8].

Is it legal?

Tesla’s FSD mode is not truly driverless. Technically, it’s classified as an advanced driver assistance system[9]. On the recognised five-level list[10] of increasingly automated cars, where 5 is fully automated, FSD is a Level 2[11].

At this level, the driver has to remain attentive and ready to take proper control[12]. Legally, this means Tesla’s FSD would be treated the same way as other vehicles[13] with advanced driver-assist systems. Tesla cars with FSD running would be compliant[14] with Australian regulations and legal to use with human oversight[15].

At higher levels of automation (Levels 3-5), the car takes on the whole driving task without constant supervision, which would be considered “automated driving”. Level 3 cars exist in limited markets overseas[16]. Level 4 cars are being used in fleet-based robotaxi trials[17] but not sold to consumers. Level 5 cars offering true autonomy, anywhere, anytime don’t yet exist.

At present, cars with Level 3 automation and above are not compliant[18] with Australian regulations and can’t operate without special permits[19] for trials and testing. They have strict conditions on safety, insurance, data sharing and geographic restrictions.

This is why the Tesla video in Melbourne video triggered pushback – it gave the impression of a higher level of automation than legally permitted without a trial permit.

What can FSD actually do?

Tesla is taking a phased approach[20] to enable FSD for eligible vehicles in Australia.

In this mode, the car can change lanes, navigate interchanges, recognise stop signs and automatically bring the car to a stop. It can even handle Melbourne’s famous hook turns[21].

But the system has hard limits[22]. The driver must be ready to step in at any moment. The system can make errors in complex or unpredictable[23] settings.

Overseas, Tesla is promoting a new supervised feature – autosteer on city streets – which would go beyond automated highway driving into more complex residential and city roads with roundabouts, traffic lights and pedestrians. But this feature remains “upcoming[24]” in Australia.

Tesla’s approach to self-driving remains controversial[25]. To sense their surroundings, the vehicles rely mainly on cameras and artificial intelligence. Critics argue[26] this leaves the system more vulnerable[27] to errors. Other self-driving car developers such as Waymo have added LiDAR and radar sensors[28] to boost safety in case other sensors fail.

Tesla’s branding of FSD as a step towards full autonomy is misleading[29]. In reality, it’s closer to a diligent learner driver[30] than a professional chauffeur. It can read the road, but still needs close supervision.

The long road to autonomy

Tesla’s push into autonomy is partly about capturing market share[31] in the fast-emerging robotaxi industry[32].

Tesla CEO Elon Musk has promised Tesla cars will one day be able to be monetised in a shared robotaxi fleet[33].

In June, the first Tesla Robotaxi went live[34] in limited areas[35] of Austin, Texas. But these vehicles are not truly driverless – a human safety monitor[36] must be on board.

Globally, Tesla is one of many companies vying for a share of the robotaxi market. Trials are expanding quickly[37]. Waymo is leading the race[38] with paid driverless rides in several cities in the United States. Its Jaguar cars are Level 4 autonomous, able to drive unsupervised but only in a set area.

Meanwhile, Baidu[39], WeRide[40] and Pony.ai[41] are scaling up in China[42], their domestic market, as well as the Gulf region[43], including Dubai[44], Abu Dhabi[45] and Riyadh[46].

a taxi driving with no driver, no one at steering wheel. photo from inside the car looking out.
In the race for the robotaxi market, Waymo is ahead. Pictured: a Waymo Jaguar I-PACE robotaxi in Los Angeles in 2024. Los Angeles Times/Getty[47]

True self-driving cars are a way off

What if a self-driving consumer car causes a crash? For a Level 2 car, supervising human drivers remain responsible.

But if a true self-driving car caused a crash, liability could fall on the manufacturer or even the software developer. Regulators are working to resolve this legal grey area.

Even as Tesla pushes towards self-driving, the company faces a class action[48] from thousands[49] of Australian drivers over alleged “phantom braking[50]” where the cars suddenly brake for no apparent reason, risking rear-end crashes.

Tesla says[51] its system can be affected by obstructed cameras and drivers are always responsible for maintaining control.

This echoes a wider debate[52]: how safe must autonomous systems be before they can replace human drivers? Human error is a major cause of road crashes. But glitches such as phantom braking undermine confidence and public trust[53], especially when lives are at stake.

In the US, federal authorities are investigating[54] crashes linked to Tesla’s driver-assist systems. California’s regulator has accused Tesla of misleading[55] advertising, and senators[56] have pressed for tougher oversight of Tesla’s marketing[57].

Despite progress, fundamental breakthroughs[58] are still required to handle rare but high-risk scenarios[59], such as pedestrians behaving unexpectedly.

Artist impression of a self-driving car from 1960s, man and woman sitting in a three wheeled car.
Self-driving cars have been imagined for decades, such as this 1961 artist’s impression of a futuristic three-wheeled self-driving car. Hulton Archive/Getty[60]

The road ahead

Cars with advanced driver-assist can recognise objects and follow rules. But unexpected things can happen.

True autonomy[61] demands the ability to interpret complex and ambiguous human behaviour.

Until then, the driver must remain firmly in charge.

References

  1. ^ Full Self-Driving (Supervised) (www.tesla.com)
  2. ^ Australia and New Zealand (teslanorth.com)
  3. ^ not been approved (www.abc.net.au)
  4. ^ technology (theconversation.com)
  5. ^ regulations (www.ntc.gov.au)
  6. ^ readiness (www.weforum.org)
  7. ^ safety (www.nhtsa.gov)
  8. ^ public trust (theconversation.com)
  9. ^ advanced driver assistance system (www.carsales.com.au)
  10. ^ five-level list (youtu.be)
  11. ^ Level 2 (www.nhtsa.gov)
  12. ^ proper control (www.ntc.gov.au)
  13. ^ other vehicles (alphacarhire.com.au)
  14. ^ would be compliant (www.carsales.com.au)
  15. ^ with human oversight (www.automotiveglobespecialist.com)
  16. ^ overseas (www.carsales.com.au)
  17. ^ robotaxi trials (waymo.com)
  18. ^ not compliant (www.carsales.com.au)
  19. ^ special permits (www.ntc.gov.au)
  20. ^ phased approach (zecar.com)
  21. ^ hook turns (x.com)
  22. ^ hard limits (www.tesla.com)
  23. ^ complex or unpredictable (doi.org)
  24. ^ upcoming (www.tesla.com)
  25. ^ controversial (research.contrary.com)
  26. ^ argue (tdv.transistor.fm)
  27. ^ vulnerable (www.linkedin.com)
  28. ^ LiDAR and radar sensors (research.contrary.com)
  29. ^ misleading (insideevs.com)
  30. ^ learner driver (au.news.yahoo.com)
  31. ^ market share (www.ark-invest.com)
  32. ^ robotaxi industry (carboncredits.com)
  33. ^ shared robotaxi fleet (fortune.com)
  34. ^ went live (www.bbc.com)
  35. ^ limited areas (www.tesla.com)
  36. ^ safety monitor (electrek.co)
  37. ^ expanding quickly (www.bbc.com)
  38. ^ leading the race (www.forbes.com)
  39. ^ Baidu (www.reuters.com)
  40. ^ WeRide (www.ccn.com)
  41. ^ Pony.ai (www.reuters.com)
  42. ^ China (www.lowyinstitute.org)
  43. ^ Gulf region (www.reuters.com)
  44. ^ Dubai (www.weride.ai)
  45. ^ Abu Dhabi (ir.weride.ai)
  46. ^ Riyadh (ir.weride.ai)
  47. ^ Los Angeles Times/Getty (www.gettyimages.com.au)
  48. ^ class action (www.teslaaction.com)
  49. ^ thousands (www.abc.net.au)
  50. ^ phantom braking (www.abc.net.au)
  51. ^ says (www.abc.net.au)
  52. ^ wider debate (www.brookings.edu)
  53. ^ public trust (theconversation.com)
  54. ^ investigating (www.reuters.com)
  55. ^ misleading (www.sfchronicle.com)
  56. ^ senators (www.markey.senate.gov)
  57. ^ Tesla’s marketing (www.blumenthal.senate.gov)
  58. ^ fundamental breakthroughs (au.news.yahoo.com)
  59. ^ rare but high-risk scenarios (doi.org)
  60. ^ Hulton Archive/Getty (www.gettyimages.com.au)
  61. ^ True autonomy (theconversation.com)

Read more https://theconversation.com/teslas-self-driving-mode-is-coming-to-australia-amid-controversy-but-it-wont-create-true-driverless-cars-264971

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