Tesla (NASDAQ:TSLA) has has revised its electric vehicle driving-range estimations downward as a response to a new U.S. government regulation aimed at ensuring accuracy in reflecting real-world performance by automakers.
On its website, Tesla updated the driving range estimates for its 2023 X, S, Y, and 3 variants compared to previous versions found on a U.S. government website. The Model Y Long Range EV, for instance, now shows an estimated range of 310 miles on Tesla's site, while the government's EPA-managed fuel economy site still displays it at 330 miles. Similarly, the range estimate for the performance variant of the Model Y was reduced from 303 miles to 285 miles.
These revisions varied across models, including minor adjustments like the Model X Plaid variant decreasing from a 333-mile estimated range to 326 miles. However, more substantial changes were observed, such as the Model S Plaid's estimated range being adjusted from 396 miles to 359 miles when comparing Tesla's current website data to an archived version from a few days prior.
Previously, Tesla had a history of providing range estimates that surpassed the actual capabilities of its vehicles, causing discontent among customers. Reports from July indicated that about a decade ago, Tesla manipulated the algorithm governing the in-dash range estimates, offering overly optimistic projections of driving distances before needing a recharge.
Further investigations uncovered the formation of a clandestine team in 2022 focused on addressing numerous driving-range complaints and bypassing service appointments related to range issues for Tesla owners. Subsequently, in an October regulatory filing, Tesla revealed federal investigators had subpoenaed the company for information concerning its vehicles' driving range.
The new regulations mandate that electric vehicle (EV) manufacturers conduct driving range and fuel efficiency tests using the vehicle's initial or default driving mode. If a car lacks a default mode, the EPA instructs automakers to test the vehicle in both its most and least efficient modes. This guidance, outlined in a July 2022 EPA letter to automakers, applies to test rule changes affecting 2024 models. Interestingly, Tesla's marketing pages on its website do not specify a particular model year when listing estimated ranges for its vehicles.
Shares of TSLA are down 2.33% in mid-day trading on Tuesday.