Tesla fined $2.2 mn for false advertising on EV range in cold weather

Elon Musk's Tesla was fined $2.2 million by the South Korean market authority for deceiving consumers about the range of its electric vehicles through ads.

The range reduction in cold weather was a problem for the Korea Fair Trade Commission (KFTC).

The manufacturer of electric vehicles reportedly posted a notice stating that "performance and mileage may vary by model" on its website in South Korea, according to Electrek.

"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.

Vehicle deliveries increased by 40% year on year to 1.31 million in 2022, while production increased by 47% year 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.