South Korea Imposes $2.2 Million Fine on Tesla for False Advertising

By Michael Elkins

Tesla, the American electric vehicle manufacturer, has faced a $2.2 million penalty from The Korea Fair Trade Commission (KFTC) due to misleading information regarding the driving range of its electric vehicles (EVs) in low temperatures. The KFTC reported that Tesla overstated the driving ranges of its cars on a single charge, the fuel cost-effectiveness compared to gasoline vehicles, and the performance of its Superchargers on its local website since August 2019 until recently.

A statement from the KFTC highlighted that Tesla vehicles can experience a reduction in driving range of up to 50.5% in cold weather compared to the ranges advertised online. While the company provides winter driving tips on its website, such as pre-conditioning vehicles with external power sources and using the updated Energy app to monitor energy consumption, it does not adequately address the impact of sub-zero temperatures on driving range.

It is worth noting that the loss of driving range in cold weather is a common issue across various electric vehicles, similar to how internal combustion engines tend to consume more fuel when temperatures drop.

As a result of this development, Tesla’s stock saw a 3.68% decline in pre-market trading on Tuesday.