SOUTH KOREA FINES ELON MUSK’S TESLA TO THE TUNE OF $2.2 MILLION FOR FALSE ADVERTISING

South Korea’s antitrust regulator, the Korean Fair Trade Commission (KFTC), announced that it would impose a fine of $2.2 million or 2.85 Korean Won on Tesla for failing to inform customers that the driving range of all of their electric cars dropped significantly during cold winters.

The KFTC alleges that the Ev giant had made false claims about the range and the charging speed of its electric cars and presented the figures in such a way that misled people into believing that battery life and the time it takes to recharge the vehicle are the same throughout the year, across all seasons.

It added that the American automaker also made deceptive claims about the cost-effectiveness of fuel savings compared to gasoline vehicles. According to the KFTC, the driving range of Tesla’s electric cars drops by up to 50.5 percent in cold weather compared to how they were advertised on the local, Korean-language website.

Tesla also failed to inform buyers that the speed with which the car charges also vary greatly depending on the charger being used, the external temperature, and the state of control of the battery.

Tesla also made some skewed estimates about the possible fuel savings. The EV giant failed to disclose how the charging cost of their EV is affected by various factors such as charging speed and the government’s policy on price discounts.

The KFTC also imposed an additional 1 million Korean Won on Tesla in addition to the 2.85 Korean Won for not providing adequate information on the cancellation policy and making it unnecessarily convoluted, among other issues.

On Monday, Tesla said it had delivered 1.31 million electric vehicles in 2022, a record for the EV-making giant. This figure was a 40 percent jump from a year before. However, at least not on Wall Street, things haven’t been going well for Tesla. After two years of record-breaking growth in the financial markets, the company’s shares plummeted 65 percent throughout 2022.

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