South Korea penalizes Tesla $2.2 Million for exaggerating the range of EVs

SEOUL (Reuters). South Korea’s antitrust regulator announced that it would impose a 2.85 Billion won ($2.2 Million) fine on Tesla Inc. for not disclosing to its customers the shorter range of its electric cars (EVs), in low temperatures.

Korea Fair Trade Commission, (KFTC), stated that Tesla exaggerated the “driving distances of its cars on one charge, their fuel cost effectiveness compared to gasoline vehicles, as well as its performance of its Superchargers”. This was on its official local website from August 2019 until now.

According to the KFTC, the driving range of U.S. EV manufacturers’ cars drops in cold weather by as much as 50.5% when compared to how they are advertised online.

Tesla could not reach Tesla immediately for comment.

Tesla’s website offers tips for winter driving, including pre-conditioning vehicles with external power sources and using its updated Energy App to monitor energy consumption. It does not mention the loss in driving range at sub-zero temperatures.

Citizens United for Consumer Sovereignty in South Korea, a consumer group representing South Koreans, stated that EVs can lose up to 40% when heated batteries are cold. This data was cited by the country’s environment ministry.

The KFTC fined Mercedes-Benz, a German carmaker, and its Korean unit 20.2 Billion Won for misleading advertising related to the gas emissions from its diesel passenger cars.

It is well-known that electric vehicles are not able to perform in extreme temperatures. However, EVs are very popular in countries like Norway where four out five of the five sold last year were electric, with Tesla leading the charge.

Geotab, a Canadian telematics provider, conducted a 2020 study on 4,200 connected electric vehicles of all makes. It found that many models showed a similar drop-off in range when cold weather hits. This is due to the fact that the battery heats the car for both the driver and passengers.

The study revealed that the average EV exceeded its range at just above 20° Celsius. But, at minus 15, the average EV only had 54% of its rated range.

(Reporting by Ju-min Park, Hyunsu Yim, Editing by Himani Sarkar, Emelia Sithole-Matarise