South Korea fines Tesla $2.2 million for EV range exaggeration: Report

The driving range of the American EV manufacturer's cars plunge in cold weather by up to 50.5% versus how they are advertised online, the KFTC said in a statement on Tuesday

Tesla
Reuters
2 min read Last Updated : Jan 03 2023 | 11:40 PM IST
South Korea’s antitrust regulator said it would impose a 2.85 billion won ($2.2 million) fine on Tesla for failing to tell its customers about the shorter driving range of its electric vehicles (EVs) in low temperatures.
 
The Korea Fair Trade Commission (KFTC) said that Tesla had exaggerated the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers” on its official local website since August 2019 until recently.
 
The driving range of the American EV manufacturer's cars plunge in cold weather by up to 50.5% versus how they are advertised online, the KFTC said in a statement on Tuesday.
 
Tesla could not be immediately reached for comment.
 
On its website, Tesla provides winter driving tips, such as pre-conditioning vehicles with external power sources, and using its updated Energy app to monitor energy consumption, but does not mention the loss of driving range in sub-zero temperatures.
 
In 2021, Citizens United for Consumer Sovereignty, a South Korean consumer group, said the driving range of most EVs drop by up to 40 per cemt in cold temperatures when batteries need to be heated, with Tesla suffering the most, citing data from the country's environment ministry.
 
Worries over weak demand, logistical issues
 
 Tesla’s shares kicked off 2023 with a near 4 per cent drop on Tuesday, extending a sell-off from their worst year on growing worries about weak demand and logistical problems that have hampered deliveries. 
 
The latest slide came after the world's most valuable automaker missed estimates for fourth-quarter deliveries despite shipping a record number of vehicles.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :South KoreaTeslaElectric Vehicles

Next Story