Tesla Fined $2.2 Million in South Korea for Alleged False Advertising
South Korea’s antitrust watchdog has announced a 2.85 billion won (about $2.2 million USD) fine on Tesla for alleged false advertising — reports Reuters.
According to the Korea Fair Trade Commission (KFTC), Tesla failed to disclose the shortened driving range of its electric vehicles (EVs) in lower temperatures in its promotional materials.
The regulator has ruled that Tesla overstated 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 South Korean website from August 2019 until recently.
In a Tuesday statement, the KFTC said that the advertised driving range of Tesla’s cars drops by up to 50.5% in cold weather.
EVs are widely known to struggle in extreme temperatures, where they have to heat up their batteries in addition to the cabin and passengers.
Even so, EVs are popular in markets like Norway, which is among the coldest countries in the world yet also the global leader in all-electric adoption. EVs accounted for four in every five vehicles sold in Norway during 2021, with Tesla leading the country’s automotive market for the second year in a row.
While Tesla does offer winter driving tips, such as pre-conditioning vehicles with external power sources, on its website, the company makes no mention of its EVs losing driving range in sub-zero temperatures.
Tesla last year also faced an investigation for “defective” door handles in South Korea, which was eventually dropped.
South Korea is reportedly courting Tesla to build its next Gigafactory in the country, promising “tailored” benefits for the automaker.