Tesla Hit With KRW 2.85 Billion Fine in South Korea Over Alleged False Advertising

South Korea’s antitrust regulator mentioned it will impose a KRW 2.85 billion (roughly Rs. 18 crore) effective on Tesla for failing to inform its prospects in regards to the shorter driving vary of its electrical autos (EVs) in low temperatures.

The Korea Truthful Commerce Fee (KFTC) mentioned that Tesla had exaggerated the “driving ranges of its vehicles on a single cost, their gasoline cost-effectiveness in comparison with gasoline autos in addition to the efficiency of its Superchargers” on its official native web site since August. 2019 till just lately.

The driving vary of the US EV producer’s vehicles plunge in chilly climate by as much as 50.5 % versus how they’re marketed on-line, the KFTC mentioned in an announcement on Tuesday.

Tesla couldn’t be instantly reached for remark.

On its web site, Tesla supplies winter driving suggestions, similar to pre-conditioning autos with exterior energy sources, and utilizing its up to date Power app to watch vitality consumption, however doesn’t point out the lack of driving vary in sub-zero temperatures.

In 2021, Residents United for Shopper Sovereignty, a South Korean client group, mentioned the driving vary of most EVs drop by as much as 40 % in chilly temperatures when batteries have to be heated, with Tesla struggling probably the most, citing knowledge from the nation’s setting ministry.

Final 12 months, the KFTC fined German carmaker Mercedes-Benz and its Korean unit 20.2 billion gained for false promoting tied to fuel emissions of its diesel passenger autos.

On Monday, Tesla reported report manufacturing and deliveries for fourth-quarter electrical autos, nevertheless it missed Wall Avenue estimates, burdened by logistics issues, slowing demand, rising rates of interest and fears of recession.

The world’s most beneficial automaker delivered 405,278 autos within the final three months of the 12 months, in contrast with Wall Avenue expectations of 431,117 autos, in accordance with Refinitiv knowledge. The corporate had delivered 308,600 autos in the identical interval a 12 months earlier.

© Thomson Reuters 2023