Tesla range diminishes significantly in cold, regulator says

An employee explains the Tesla Model 3 vehicle at the company's Shanghai Gigafactory in Shanghai, China. [REUTERS]

Tesla has been called out by a regulator for exaggerating battery performance.

It could eventually be fined by the Fair Trade Commission (FTC).

After a year and a half of investigation, the FTC said Monday it sent a report to the U.S. electric carmaker, notifying the company that it violated advertisement rules by keeping crucial information from consumers.

According to the antitrust agency, batteries in some Tesla Model 3 sedans discharged nearly 40 percent faster at minus seven degrees Celsius (19.4 degrees Fahrenheit), but the company did not inform the customers that the driving range might decrease in cold weather.

That means a Model 3 Standard, which was estimated to go 352.1 kilometers when fully charged, went 212.9 kilometers in low temperatures, down 39.5 percent. The driving range of the most expensive model, the Model 3 Long-range, dropped 38.8 percent, from 446.1 kilometers per charge to 273 kilometers.

The EV maker is likely to face a fine of more than 10 billion won ($8.35 million), a maximum of two percent of its sales, though further details are yet to be decided.

Last March, Citizens United for Consumer Sovereignty (CUCS) released a report based on data compiled by the Ministry of Environment. According to CUCS, the driving range per charge decreased in every EV model tested below minus seven degrees Celsius, but the gap was the biggest in the Tesla Model 3.

The CUCS pointed out that Tesla should have informed consumers that the battery efficiency significantly differs depending on the weather.

"If the battery performance decreases by 39.5 percent in low temperatures under minus seven degrees Celsius, the efficiency will be more than halved under minus 15 degrees Celsius," said Park Soon-jang, head of a consumer monitor team at CUCS.

Park pointed out that Tesla sold the vehicles without disclosing the battery performance issue even though it was aware of it, which is a violation of the Act on Fair Labeling and Advertising.

"We checked battery performance test results of every EV on the market except for Tesla's Model X SUV because the company didn't even request certification for the Model X from the Ministry of Environment," said Park, adding that all EV makers, including Tesla, should notify consumers about driving range difference on their websites.

Kia's Niro electric SUV recorded the smallest gap, at 9.5 percent, from 385 kilometers per charge to 348.5 kilometers, followed by 9.8 percent from Hyundai Motor's SUV Kona.

According to Korea Automotive Technology Institute, Tesla sold a total of 17,828 vehicles last year in Korea, and the Model 3 sedan was 49 percent of the total. The Model 3 was the fifth most popular EV in the domestic market.

Tesla is also expected to face sanctions from the FTC for not refunding 100,000 won deposits to customers when an online purchase is canceled.

BY MOON HEE-CHUL [shin.hanee@joongang.co.kr]