Seoul, Jan 4 (Ajit Weekly News) South Korean market regulator has fined Elon Musk-run Tesla $2.2 million for misleading consumers about the range of its electric vehicles via advertisements.
The Korea Fair Trade Commission (KFTC) had an issue with the range drop in cold weather.
According to Electrek, the electric-car maker has now added a disclaimer to its website in South Korea, saying “performance and mileage may vary by model”.
“The displayed drivable distance may vary depending on external factors such as speed, weather conditions and road conditions.,” said Tesla.
Last year, KFTC launched an investigation into allegations that Tesla violated advertising laws by overstating the range of its electric vehicles.
Now, the KFTC announced that it is imposing a 2.85 billion won ($2.2 million) fine on Tesla for not stating “that its range might drop significantly in cold weather”.
Meanwhile, Tesla missed its target of 50 per cent growth in production and deliveries for 2022, as its stock plummeted around 65 per cent amid Musk’s $44 billion Twitter takeover last year.
The automaker needed to sell 495,760 vehicles in its fourth quarter (Q4) to have achieved the 50 per cent growth guidance.
In the fourth quarter, Tesla produced over 439,000 vehicles and delivered over 405,000 vehicles.
In 2022, vehicle deliveries grew 40 per cent (year-on-year) to 1.31 million while production grew 47 per cent (on-year) to 1.37 million.
Investors fear that the China Covid situation and supply chain-related challenges will further impact Tesla sales. They are also concerned about Musk’s distraction by his Twitter overhaul.
–Ajit Weekly News
News Credits – I A N S