Tesla has been hit with 2.85 billion won ($2.2 million) by the antitrust regulator in South Korea over fraudulent advertising, claiming that the car company exaggerated the range of its electric vehicles (EVs) in cold weather.
'Slapped With a Penalty'
According to various reports, including by Business Insider India, the Korea Fair Trade Commission (KFTC) said at a news conference on Tuesday, Jan. 3, that Tesla misled buyers about the actual range of its EVs by overstating it under ideal conditions.
The KFTC has claimed that, from at least August 2019, Tesla had made false claims about "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 website.
Nam Dong-il, a spokesman for the KFTC, said during the press conference that Tesla had spread "false, exaggerated, and deceptive" ads about its automobiles.
According to the KFTC, the EV range of Tesla's cars decreases by more than 50.5% in cold weather, far more than what was stated online.
After the KFTC began its inquiry in February 2022, the automaker reportedly altered the advertising on its Korean-language website.
Moreover, Bloomberg reports that the Korean government has fined the company 1 million won (about $800) for violating the country's Electronic Commerce Act because it failed to give clients sufficient information on its cancellation policy.
According to statistics from Korea's environment ministry, cited by Reuters, a consumer organization in South Korea called Citizens United for Consumer Sovereignty said that the electric car range declines by as much as 40% in lower conditions, especially for Teslas.
Tesla's website offers winter driving guidelines, including recommending that customers precondition their cars and use the company's energy app. There is no discussion of how cold weather reduces a car's range.
The South Korean Market
In October 2022, Tesla sold 45,812 electric cars in South Korea since opening its local office in 2015. It makes it one of the largest green car brands in the nation, as stated by Korea's transport ministry to Bloomberg.
Last month, CEO Elon Musk suggested South Korea for the next Tesla Gigafactory site.
South Korea is wooing Tesla to establish its second Asian Gigafactory, based on previous reports. The Ministry of Trade, Industry, and Energy is reportedly leading the effort.
Anonymous sources suggest it is finalizing prospective Gigafactory sites in the nation.
Q4 2022 Results
Tesla just published their final quarter 2022 results, claiming over 405,000 electric car deliveries. It smashes Tesla's previous record for 2021, so the business may rejoice.
Tesla's recent press release said it delivered 405,278 electric cars globally in Q4 2022.
It was a massive success for Tesla, particularly in the final three months of 2022, when it produced its deliveries at its current production pace. Furthermore, it exceeded its previous record for EV deliveries in 2021.
Nevertheless, Wall Street analysts expected a higher quantity of EVs from the carmaker.
Analysts were not satisfied despite record deliveries and output. They predicted more deliveries from the corporation, as many as 417,957, which it did not meet.
