Photo: Tesla Media
It was a topsy-turvy year for Elon Musk and Tesla in 2022, and the the New Year has started in a similar fashion in terms of a good news-bad news ratio.
The most recent news came out of Seoul, South Korea, where government antitrust regulators hit the electric vehicle manufacturer with a $2.2 million (2.85 billion won) fine for failing to disclose the impact colder temperatures would have on the driving range of its vehicles.
The Korea Fair Trade Commission (KFTC) went as far as to say that Tesla 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."
Readers of autoevolution will recall an article posted on December 15, where we summarized a study by Recurrent that showed electric vehicle range in colder temperatures can dip by as much as 30%. The four models of Tesla on the road averaged a 16.5% loss in range, led by the Model S with a 19% reduction in range.
in 2021, the South Korean consumer group Citizens United for Consumer Sovereignty stated most EVs experience range drops by as much as 40% in cold temperatures, with Tesla models being the most impacted.
This is not the first time the KFTC has fined an automaker. Mercedes-Benz was fined $15.6 million dollars (20.2 billion won) for false advertising regarding emissions of its diesel passenger vehicles.
While the second half of 2022 sales numbers in South Korea have not been posted, the first half of the year Tesla sales in the Asian country were certainly forgettable. The company managed to sell only 6,746 vehicles in the January through June period, down 31% from 2021. In fact, in July, Tesla did not record any sales in Korea as it stated shipments that arrive every three or four months were sold out for the next two shipments, according to Business Korea.
The decline was thought to be caused by several factors including a price hike and an increase in competition from the likes of BYD in neighboring China.
The fine comes as range and charge anxiety remain the biggest concerns among prospective electric vehicle buyers. News of the significant drop in range during winter months certainly will not help.
All was not bad news regarding South Korea. In November, Elon Musk suggested after a meeting with South Korean president Yoon Suk Yeol, that the company's second factory in Asia could be placed in South Korea. A decision on the next Gigafactory was expected by the end of the year, but never materialized.
Musk also expressed a willingness to develop the country's charging infrastructure and expand supply chain cooperation with Korean companies. It remains to be seen how the New Year fine will impact the company's decision.
The Korea Fair Trade Commission (KFTC) went as far as to say that Tesla 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."
Readers of autoevolution will recall an article posted on December 15, where we summarized a study by Recurrent that showed electric vehicle range in colder temperatures can dip by as much as 30%. The four models of Tesla on the road averaged a 16.5% loss in range, led by the Model S with a 19% reduction in range.
in 2021, the South Korean consumer group Citizens United for Consumer Sovereignty stated most EVs experience range drops by as much as 40% in cold temperatures, with Tesla models being the most impacted.
This is not the first time the KFTC has fined an automaker. Mercedes-Benz was fined $15.6 million dollars (20.2 billion won) for false advertising regarding emissions of its diesel passenger vehicles.
While the second half of 2022 sales numbers in South Korea have not been posted, the first half of the year Tesla sales in the Asian country were certainly forgettable. The company managed to sell only 6,746 vehicles in the January through June period, down 31% from 2021. In fact, in July, Tesla did not record any sales in Korea as it stated shipments that arrive every three or four months were sold out for the next two shipments, according to Business Korea.
The decline was thought to be caused by several factors including a price hike and an increase in competition from the likes of BYD in neighboring China.
The fine comes as range and charge anxiety remain the biggest concerns among prospective electric vehicle buyers. News of the significant drop in range during winter months certainly will not help.
All was not bad news regarding South Korea. In November, Elon Musk suggested after a meeting with South Korean president Yoon Suk Yeol, that the company's second factory in Asia could be placed in South Korea. A decision on the next Gigafactory was expected by the end of the year, but never materialized.
Musk also expressed a willingness to develop the country's charging infrastructure and expand supply chain cooperation with Korean companies. It remains to be seen how the New Year fine will impact the company's decision.
Google News