Tesla Receives $2.2 Million Fine from South Korea After Failure to Disclose Low-Temp EV Performance

Per Reuters

Tesla was slapped with a $2.2 million fine from South Korea's antitrust regulator. The Korea Fair Trade Commission (KFTC) said that from August 2019 until recently, the company failed to disclose its true driving ranges, cost-effectiveness, and performance.

The KFTC shared how Tesla EVs driving ranges dropped by up to half of how they were initially advertised online. The company's website provides tips on driving their EVs during winter.

The online tips for winter driving involve pre-conditioning vehicles with the help of external power sources or using the Energy app. However, Tesla does not give direct tips on what to do with their vehicles when driving through sub-zero temperatures or mention how its driving ranges drop in extreme temperatures.

The KFTC's fine on Tesla comes shortly after Mercedes-Benz, the German carmaker, and its Korean unit was also fined for false advertising. The fine was worth 20.2 billion won or almost $16 million USD for gas emissions of its diesel passenger vehicles' misleading ads.

KFTC: Tesla 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"

Amid the cold temperatures of Winter, Tesla EVs reportedly performed under par as a story by Business Insider shares how a brother and sister noted that they needed six stops in a day just to charge their Tesla. The story revolves around how others shared the same issue: cold weather affected how fast their Tesla battery would drain.

A South Korean consumer group Citizens United for Consumer Sovereignty, said they experienced a 40% drop in EV driving range when batteries needed heat. Within the report, Tesla was notably the company that suffered the most regarding cold temperature performances.

A study by Geotab, a Canada-based telematics provider, revealed that at minus 15 degrees Celsius, the average EV would only perform 54% of its supposedly rated range. The study was drawn from 5.2 million trips connected to 4,200 EVs.

Resources:

Reuters

Tesla

Business Insider

Geotab

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