Electric vehicle maker, Tesla, has been hit with a KRW 2.85 billion ($2.24 million) fine by South Korea's antitrust regulator, the Korea Fair Trade Commission (KFTC), for failing to disclose the shorter driving range of its electric vehicles (EVs) in low temperatures.
The KFTC stated that Tesla exaggerated the driving range of its EVs, the fuel cost effectiveness compared to gasoline vehicles, and the performance of its Superchargers on its South Korean website between August 2019 and recently. The regulator also said that the driving range of Tesla EVs can drop by up to 50.5% in cold weather, compared to the range advertised online.
Studies have shown that the range of EVs can be significantly impacted by cold weather, as the battery used to power the vehicle is also responsible for heating the interior. Data from South Korea's environment ministry reportedly showed that most EVs experience a drop in range of up to 40% in cold weather, with Tesla's vehicles experiencing the largest drop, according to consumer group Citizens United for Consumer Sovereignty.
The fine is the latest in a string of setbacks for Tesla, which recently reported record EV deliveries in Q4 2022, with over 405,000 vehicles delivered. However, analysts had expected Tesla to deliver 418,000 EVs in the same period. In response to the news, Tesla's stock dropped over 10% on Tuesday, following a 72% decline in the company's share price over the past year.
In 2021, the KFTC also imposed a KRW 20.2 billion ($16.4 million) fine on Mercedes-Benz and its Korean unit for false advertising related to the gas emissions of its diesel passenger vehicles.
We have yet to hear any official statement from Tesla in response to the situation.