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Tesla has been accused of failing to inform car owners of an unexpected drop in the mileage of the vehicles it sells. The Fair Trade Commission (FTC) of South Korea said the mileage of the EVs drastically goes down at sub-zero temperatures.
For this finding, the South Korean antitrust regulator is planning to impose a fine on Elon Musk’s Tesla company. The FTC may fine the EV-maker with more than ₩10 billion or around $8.4 million in penalty.
As per The Korea Economic Daily, the FTC’s plan to fine Tesla was revealed on Monday, Feb. 14, by sources in the industry as well as the government. The commission said that its findings showed Tesla had overstated the fuel mileage on some of its EV model units, including the Model 3.
It was reported that the mileage for the Long Range version of Tesla Model 3 shrunk by 38.8% when it was driven at below minus 7 temperatures. A source said this happened as its battery performance has weakened.
The company stated that its Long Range units are capable of 446.1 kilometers of range on a single charge. This statement has been refuted by the country’s FTC by saying the claim is an overstatement.
The FTC said that Elon Musk’s car manufacturing firm has misinformed drivers by saying the distance that its cars usually cover in warm places is their average mileage. The fine that may be imposed on Tesla is an administrative one for exaggerated advertisement.
The amount has been determined based on the maximum two percent of Tesla’s annual sales. Thus, it is likely to pay ₩10 billion since it was said to have made more than ₩1 trillion in South Korea last year.
The country’s FTC sent its report to Tesla on Monday and informed the company about its suspicion it has exaggerated the mileage of some of its cars. The agency said this act violates the nation’s Act on Fair Labeling and Advertising, Reuters reported.
Meanwhile, Tesla was said to have denied any wrongdoing and dismissed the allegations. The company explained the advertised mileages for its EVs sold in South Korea, and other territories are based on the distance they cover at room temperature. Tesla will be taking legal action against the administrative move.
