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South Korea fines Tesla $2.2 million for exaggerating driving range

Tesla's car plunge in cold weather by up to 50.5% versus how they are advertised online (Getty Images via AFP)

The Korea Fair Trade Commission (KFTC) said that it failed to tell its customers about the shorter driving range of its electric vehicles (EVs) in low temperatures.

News agency Reuters reported that Tesla had exaggerated the "driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers" on its official local website since August 2019 until recently.

However, according to the KFTC, the driving range of the US EV manufacturer's car plunge in cold weather by up to 50.5% versus how they are advertised online.

On its website, Tesla provides winter driving tips, such as pre-conditioning vehicles with external power sources, and using its updated Energy app to monitor energy consumption, but does not mention the loss of driving range in sub-zero temperatures.

In 2021, Citizens United for Consumer Sovereignty, a South Korean consumer group, said the driving range of most EVs dropped by up to 40% in cold temperatures when batteries need to be heated, with Tesla suffering the most, citing data from the country's environment ministry.

Last year, the KFTC fined German carmaker Mercedes-Benz and its Korean unit 20.2 billion won for false advertising tied to gas emissions of its diesel passenger vehicles.

The challenge for electric vehicle performance in extreme temperatures is widely known, though EVs are popular in markets like Norway, where four out of five vehicles sold last year were battery-powered, led by Tesla.

A 2020 study of 4,200 connected EVs of all makes by Canada-based telematics provider Geotab found that most models had a similar drop in range in cold weather, primarily because the battery is also used to heat the car for the driver and passengers.

At just above 20 degrees Celsius, the average EV outperformed its stated range, but at minus 15 degrees the average EV had only 54% of its rated range, the study found.

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