Victoria Slams Brakes on Tesla’s Autonomous Trial—Here’s Why It Matters

Victoria just handed Tesla a hard 'no' on its autonomous vehicle trial—and the fallout could ripple far beyond Melbourne's streets.

Regulatory Roadblocks

The state government cited unresolved safety concerns and regulatory gaps, leaving Tesla’s ambitious self-driving plans stuck in neutral. No official data was disclosed, but insiders hint the decision wasn’t even close.

Tech vs. Tradition

While Tesla pushes its Full Self-Driving narrative globally, regulators aren’t blinking. Victoria’s move echoes growing skepticism toward Silicon Valley’s 'move fast and break things' ethos—especially when public safety’s on the line.

Investor Jitters

Another delay, another dip? Tesla’s autonomy setbacks are starting to look like a recurring revenue leak—almost as predictable as a crypto influencer promising 100x returns. Spoiler: both often end in tears.

TLDRs:

• Victorian authorities did not approve Tesla’s autonomous vehicle test in Melbourne’s CBD.
• Tesla’s Full Self-Driving (FSD) supervised feature is coming soon to Australia.
• Experts warn unapproved FSD trials pose serious public safety risks.
• Tesla faces scrutiny over phantom braking and driver responsibility in Australia.

A Tesla test of its Full Self-Driving (FSD) technology in Melbourne’s Central Business District earlier this year was conducted without the Victorian government’s approval, authorities confirmed.

The test, which appeared in a viral video X back in May, showed a Tesla navigating busy streets with the driver’s hands reportedly off the steering wheel, including successfully executing one of Melbourne’s challenging hook turns.

Under Victorian law, any on-road trials of autonomous vehicles require a special permit from the Department of Transport and Planning to ensure public safety. The department confirmed that no such permit was granted for Tesla’s demonstration.

“The Department has not approved any testing of fully autonomous vehicles in Melbourne’s CBD and will continue to engage with Tesla,” a spokesperson said.

Safety Concerns Raised by Experts

Michael Milford, director of the Queensland University of Technology’s Centre for Robotics, expressed alarm over the footage. He noted that the vehicle operated in close proximity to pedestrians and heavy traffic, leaving the driver with minimal opportunity to intervene in a potential emergency.

“If the car had gone out of control near those people, the driver WOULD have had almost no chance to react in time to prevent a major incident,” Milford said.

Tesla emphasizes that its Full Self-Driving (Supervised) system requires drivers to actively supervise the car at all times, yet critics argue the reliance on cameras alone, rather than range sensors like LiDAR, can create vulnerabilities, such as phantom braking triggered by shadows or road obstructions.

FSD (Supervised) testing in Melbourne, Australia

And yes, that’s a hook turn pic.twitter.com/tjakHvRohP

— Tesla AI (@Tesla_AI) May 16, 2025

FSD Supervised Coming Soon to Australia

Despite the regulatory setback, Tesla has announced that the Full Self-Driving (Supervised) feature will soon be available to Australian drivers.

The system, currently deployed in countries including the United States, Canada, China, Mexico, and Puerto Rico, allows vehicles to navigate with minimal driver intervention, but Tesla maintains that drivers remain responsible for maintaining control.

Tesla has also conducted demonstrations in Brisbane, Queensland, where local regulations do not require a permit for such tests, although drivers must keep at least one hand on the wheel.

Videos from these trials have shown drivers allowing the system to navigate suburban streets without manual input, highlighting the company’s push toward a so-called “fully autonomous future.”

Legal and Regulatory Pressures Mount

The Victorian FSD controversy comes amid broader scrutiny of Tesla’s autonomous technology. In Australia, drivers have initiated a class action lawsuit citing “phantom braking,” sudden deceleration episodes that could pose significant safety risks. Tesla has denied the vehicles are defective, citing various factors that may affect automatic emergency braking, including weather, debris, and road curvature.

Globally, Tesla has faced multiple lawsuits related to autopilot crashes, with whistleblower revelations in the U.S. uncovering thousands of customer complaints about the system. Experts and advocates continue to call for greater transparency, rigorous safety testing, and legal accountability for autonomous vehicle trials.