Tesla fined $2.2 million in Korea for misleading customers

Tesla is having one heck of a start to the new year - 2023 began with the company posting the biggest sales, but still missed analysts' expectations. Then came the appointment of Tom Zhu as the second-in-charge of the company and now we have news of Tesla being fined for its advertising practices.

The company was ordered to pay $2.2 million by the antitrust authority in South Korea for alleged violations of advertising laws.

The Korea Fair Trade Commission (KFTC) announced that Tesla has been misleading consumers about the driving range, fuel efficiency, and performance of its Superchargers on its official website in South Korea since August 2019. According to the KFTC, the driving range of Tesla vehicles has been overstated and can drop by as much as 50.5% in cold weather, compared to the advertised range.

On its website, Tesla provides recommendations for winter driving, such as using external power sources to pre-condition the vehicle and using the updated Energy app to track energy use. However, the website did not mention that the driving range of the vehicles may be reduced in sub-zero temperatures.

So the South Korean Fair Trade Commission stated that Tesla engaged in deceptive advertising and exaggerated the driving range, charging speed, and potential cost savings of its electric vehicles. The investigation began in February, and as a result, Tesla modified the Korean version of its website.

According to the South Korean Ministry of Transportation, as of the end of September 2021, Tesla sold 45,812 electric vehicles in the country since opening a local office in 2015. This gave Tesla a market share of 13% in South Korea.

Source