South Korea fines Tesla (TSLA) $2.2m for false advertising

American electric vehicle maker, Tesla (NASDAQ: TSLA) has been fined $2.2 million by The Korea Fair Trade Commission (KFTC) for failing to tell its customers about the shorter driving range of its electric vehicles (EVs) in low temperatures. The Korean antitrust regulator 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.

According to a statement by the KFTC on Tuesday, the driving range of the Tesla vehicles plummet in cold weather by up to 50.5% versus how they are advertised online. The car maker’s website offers 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.

It is important to note that range loss during cold weather driving is not unique to Tesla. Most electric vehicles generally experience some loss of driving range in cold weather, like internal combustion cars, which typically consume more fuel in low temperatures.

Shares of TSLA are down 3.68% in pre-market trading on Tuesday.

By Michael Elkins | [email protected]

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