Tesla to Pay $2.2 Million Fine to South Korea for False Advertising

• South Korea’s antitrust authority announced that Tesla is being fined 2.85 billion won ($2.2 million) for neglecting to inform customers of its electric vehicles’ decreased driving range in cold climates.
• In freezing temperatures, the driving range of U.S. EV manufacturers’ vehicles can decrease by up to a complete 50.5% compared to what is advertised online, according to an announcement released Tuesday by the KFTC.

South Korea’s antitrust commission has determined that Tesla will receive a 2.85 billion won ($2.2 million) fine due to its failure to appropriately inform customers of the diminishing driving range in cold temperatures for their electric vehicles.

According to the Korea Fair Trade Commission, Tesla had engaged in deceptive advertising by exaggerating 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.” Since August 2019, the official local website has hosted this information – until recently.

Also Read – Tesla Shares Plummet to All-Time Lows Close as Investors Question Musk’s Focus

According to the KFTC statement on Tuesday, U.S EV manufacturer’s cars have a driving range that plummets by up to 50.5% in cold weather as opposed to what is advertised online.

Tesla was unavailable for comment at that time.

Tesla’s website provides valuable winter driving advice such as pre-heating vehicles with external power sources and monitoring consumption through the Energy app, yet fails to mention that range can be significantly reduced in below-freezing temperatures.

In 2021, Citizens United for Consumer Sovereignty reported that the range of most electric vehicles encountered a steep decline in cold temperatures due to their batteries needing heating. The South Korean-based consumer group found that these EVs dropped by up to 40%, with Tesla suffering the greatest consequence according to data from the environment ministry.

Last year, Mercedes-Benz and its Korean subsidiary were heavily penalized by the KFTC for their false advertising claims regarding gas emissions from diesel passenger vehicles. The hefty fine amounted to a total of 20.2 billion won.