Tesla reportedly fined US$2.2 million by South Korea for false advertising

South Korea's antitrust regulator has reportedly fined Tesla US$2.2 million for false advertising claiming that the company overstated the driving range of its electric vehicles during cold weather, according to a report by Reuters.

The Korea Fair Trade Commission (KFTC) said since August 2019 until recently, Tesla 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. According to the report, the driving range of Tesla’s cars plunge in cold weather “by up to 50.5% versus how they are advertised online”. 

In fact, performance in extreme temperatures is a huge challenge to electric vehicle manufactures. Most EV models saw a similar drop in range in cold weather, as the battery is also used to heat the car, according to a study conducted by telematics provider Geotab. According to the Reuters' report, Citizens United for Consumer Sovereignty, a South Korean consumer group said in 2011 that, the driving range of most electric vehicles drop by up to 40% in cold temperatures when batteries need to be heated, in which Tesla suffered the most.

A check by MARKETING-INTERACTIVE on Tesla’s official website saw that the company provides winter driving tips for its customers, such as using the energy app to view the vehicle’s real-time and projected energy usage and watching for the blue snowflake icon to see if the battery is too cold for full power and ideal range.

This is not the first time Tesla being involved for false advertising. Back in September 2022, Tesla was sued for "false advertising" on its full self-driving car. A lawsuit brought about by Briggs A Matsko was about “to hold Tesla and its representatives, including CEO Elon Musk, accountable for years of making misleading and deceptive statements regarding the company’s advanced driver assistance systems”.

According to another report by Reuters, South Korea fined German carmaker Mercedes-Benz and its Korean unit US$16.9 million for false advertising over gas emissions of its diesel passenger vehicles in February 2022.

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