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South Korea fines Tesla $2.2 million for exaggerating driving range of EVs

Published Jan 02, 2023 10:04PM ET Updated Jan 03, 2023 03:47PM ET
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© Reuters. FILE PHOTO: A Tesla logo is seen on a wheel rim during the media day for the Shanghai auto show in Shanghai, China April 16, 2019. REUTERS/Aly Song
 
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SEOUL (Reuters) - South Korea's antitrust regulator said it would impose a 2.85 billion won ($2.2 million) fine on Tesla (NASDAQ:TSLA) Inc 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 U.S. 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% in cold temperatures when batteries need to be heated, with Tesla suffering the most, citing data from the country's environment ministry.

Last year, the KFTC fined German carmaker Mercedes-Benz and its Korean unit 20.2 billion won for false advertising tied to gas emissions of its diesel passenger vehicles.

The challenge for electric vehicle performance in extreme temperatures is widely known, though EVs are popular in markets like Norway, where four out of five vehicles sold last year were battery-powered, led by Tesla.

A 2020 study of 4,200 connected EVs of all makes by Canada-based telematics provider Geotab found that most models had a similar drop in range in cold weather, primarily because the battery is also used to heat the car for the driver and passengers.

At just above 20 degrees Celsius, the average EV outperformed its stated range, but at minus 15 degrees the average EV had only 54% of its rated range, the study found.

South Korea fines Tesla $2.2 million for exaggerating driving range of EVs
 

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Comments (9)
DIDAC GOMEZ
DIDAC GOMEZ Jan 04, 2023 3:10AM ET
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Kia & Hyundai too?
Aftabahmad Aftabahmad
Aftabahmad Aftabahmad Jan 03, 2023 7:51PM ET
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🌐🌐🌐
Pi Fo
Pi Fo Jan 03, 2023 4:20PM ET
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2 peanuts?
Darren Kirsch
Darren Kirsch Jan 03, 2023 4:00PM ET
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Who really cares!
Paulo Lima
Paulo Lima Jan 03, 2023 6:45AM ET
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"primarily because the battery is also used to heat the car". Government is, sometimes, just a money grabbing machine.
First Last
First Last Jan 03, 2023 6:45AM ET
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How else can the gov't be a money-spending machine?
First Last
First Last Jan 03, 2023 6:45AM ET
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(besides by being a money-borrowing machine)
gab nea
gab nea Jan 03, 2023 6:44AM ET
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exaggerating is lying, no? he must be a Republican! stay away from Musk!
Frank Decardenas
Frank Decardenas Jan 03, 2023 5:04AM ET
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Meed a new power source, makes hidrogen cells more appealing.
Yassin official
Yassin official Jan 03, 2023 4:16AM ET
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good cwestion!
DIDAC GOMEZ
DIDAC GOMEZ Jan 02, 2023 10:38PM ET
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Will they do it also to Hyundai?
Aleksandr Rogovoy
Aleksandr Rogovoy Jan 02, 2023 10:38PM ET
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good cwestion !
Jan 02, 2023 10:38PM ET
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That's depends, is Hyundai misleading their customer ls too?
 
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