Electric vehicle giant Tesla has reportedly attracted the US Department of Justice’s (DOJ) attention over “certain matters” involving its “misleading” EV driving range claims, The Telegraph reported, citing the company’s statement on Monday.
Investigation details
Tesla revealed in a stock market disclosure that it received subpoenas from the DOJ, asking them to provide more details about personal benefits, personnel decisions, and the driving range of its EV offerings.
Tesla further noted that the investigation may have a “material adverse impact on the Musk-led automaker if the US officials will seek enforcement measures.
Allegations
Several Tesla owners apparently filed class-action lawsuits against the electric vehicle giant, claiming that its models’ claimed driving ranges mislead customers.
The lawsuit filed in July also asserts that the Musk-led company established a “Diversion Team” tasked to cancel all customer appointments with authorized stores regarding the driving range issue, Forbes reported.
In August, drivers sued Tesla, claiming that their EVs only deliver 50% of their estimated driving range.
“Many Tesla owners noticed that the average range in their vehicles was well below the range Tesla had advertised prior to their purchase. Consumers who complained or scheduled appointments with Tesla regarding the below-advertised ranges in their vehicles discovered that Tesla would cancel such appointments and would explain that their electric vehicle was performing as intended.”
Legal Claim
Nonetheless, there are still no customer reports related to battery pack issues. That said, the misleading driving range claims are incorporated in the Tesla cars’ software. It allegedly shows inaccurate remaining range, leading to issues when attempting to hyper-mile to the next Supercharger station.
This latest case accuses Tesla of violating vehicle warranties, facilitating unfair market competition and “fraud.”
Previous reports
Tesla is known for its attractive estimated driving range claims rather than sticking to the WLTP standards. In effect, it somehow misleads buyers about the accurate numbers that match real-world driving.
TechRadar reported a previous case requiring Tesla to pay back Norway-based customers after it executed a software update that reduced the vehicles’ driving range and charging capacities.
Apart from that, South Korea-based owners also filed a similar complaint against Tesla, resulting in a $2.2 million fine.
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Such issues will significantly affect the brand because they involve critical product information. If it is proven that Tesla intentionally advertises false details to boost sales, it may discourage customers from buying its electric cars.
