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Tesla gets probed by South Korean regulator over suspicions of “exaggerated” vehicle range claims

Tesla's Winter Experience 2019. | Credit: Danni Efraim

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The Korea Fair Trade Commission (KFTC), South Korea’s antitrust regulator, has launched an investigation against US-based EV maker Tesla over the company’s alleged “exaggerated” claims about its electric cars’ range. The investigation was confirmed by a representative of the KFTC on Tuesday. 

News about the investigation was initially posted by Seoul-based Yonhap News Agency late Monday. The Fair Trade Commission examiner reportedly sent a review report, equivalent to the prosecution’s indictment, to Tesla. The document outlined potential sanctions, including possible fines against the company, for allegedly violating South Korea’s Fair Labeling and Advertising Act. 

“We plan to hold a meeting to decide the level of sanctions against the automaker,” a KFTC official later stated. 

What seems to be a key part of the KFTC’s grievance against Tesla lies in the company’s range estimates for its vehicles. Tesla, for example, notes on its website that the Model 3 sedan can travel 528 km (328 miles) per charge. According to the KFTC, this number may not be accurate, especially if the vehicle is being driven in temperatures that are below freezing. 

It should be noted that range loss during cold weather driving is not a Tesla-exclusive issue. Analysts have noted that most electric vehicles generally experience some loss of driving range during cold weather. The same is true for internal combustion cars, since gas-powered vehicles typically consume more fuel when temperatures drop. “Gas cars lose range just like electric cars; you’re consuming more fuel in winter than in summer,” Yves Racette, a Quebec-based consultant, said

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Apart from potential sanctions because of its vehicles’ range estimates, the Korea Fair Trade Commission is also planning on imposing a fine against Tesla over the company’s alleged practice of not refunding a 100,000 won ($83) order fee, which customers are required to pay when they place an order for a vehicle. The KFTC noted that the $83 fee does not get returned even if the customer cancels their order. 

The KFTC argues that Tesla’s order fee practices infringe on consumers’ right to withdraw subscription. A review report about the issue has been sent to the electric vehicle maker. 

Tesla is yet to issue a response to the KFTC’s recent investigation. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Starlink India’s license faces delay due to regulatory requirements

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(Credit: Starlink/X)

SpaceX’s satellite internet venture Starlink has yet to secure an operating license in India. Starlink is facing regulatory delays in India despite ongoing progress.

India’s Telecom Minister Jyotiraditya Scindia confirmed that the company must meet stringent requirements before launching services in the country.

“The process is ongoing. The minute they meet all conditions — including setting up gateways in India and registering user terminals locally — we are ready to issue the license,” Scindia told local media.

The licensing process involves multiple agencies in India, including the Department of Telecommunications (DoT), the Telecom Regulatory Authority of India (TRAI), and the Indian National Space Promotion and Authorization Center (IN-SPACe). These agencies are evaluating Starlink’s compliance with India’s technical, administrative, and national security standards.

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Scindia emphasized Starlink’s need for domestic registration of user terminals and local gateways to address data sovereignty and internal security concerns.

“It’s not only related to DoT but also to internal security — gateways have to be in India, any user terminal has to be registered in India…the minute they check all the boxes, which I also hope will be soon, the license should be given,” he added.

The requirements reflect India’s cautious approach to integrating foreign satellite providers into its telecom ecosystem. The delay comes amid broader industry calls for enhanced connectivity. At Mobile World Congress 2025 in Barcelona, Bharti Airtel chairman Sunil Mittal urged regulators to support telecom operators in closing the global connectivity gap for 400 million people, particularly in rural India. He advocated for resource sharing between terrestrial and satellite operators to avoid duplicative investments.

Bharti Airtel and Jio Platforms signed agreements with SpaceX to help expand Starlink services in India. The agreements are contingent on the Indian government approving Starlink’s license.

Starlink’s potential entry into India could bolster rural connectivity, but regulatory hurdles remain a significant barrier. As the company works to meet India’s conditions, its progress is closely watched by telecom operators and regulators alike. The outcome could shape the role of satellite internet in addressing India’s digital divide, aligning with global efforts to expand access through collaborative infrastructure investments.

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SpaceX investment fuels Alphabet’s $8 billion profit surge

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(Credit: SpaceX/X)

Alphabet Inc.’s first-quarter profit soared, boosted by an $8 billion unrealized gain from its investment in SpaceX. Since 2015, Alphabet has been a key SpaceX investor, joining Fidelity Investments to inject $1 billion for a 10% stake in the space firm.

The tech giant reported a 46% surge in net income to $34.54 billion, driven by strong advertising revenues and the SpaceX windfall, Bloomberg reported Thursday, citing a person familiar with the matter. SpaceX’s valuation hit approximately $350 billion in December, cementing its status as one of the world’s most valuable private companies. The company thrives on NASA contracts and its Starlink satellite internet service, which provides direct-to-consumer connectivity.

Unlike Tesla, SpaceX has largely sidestepped public backlash tied to CEO Elon Musk despite growing scrutiny. The Tesla Takedown movement, emboldened by Tesla’s first-quarter 2025 earnings, plans to target Musk’s other ventures, including SpaceX and Starlink.

Starlink faces its own challenges abroad. For instance, Ukraine is exploring Starlink alternatives developed by the European Union. Ukraine and EU member states have become increasingly worried about Elon Musk, which is being reflected in SpaceX’s Starlink contracts on the continent. However, Starlink remains critical for Ukraine’s battlefield connectivity, with EU alternatives lagging behind SpaceX’s robust internet capabilities.

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Alphabet’s financial windfall underscores SpaceX’s growing influence in the space and satellite internet sectors. The $8 billion gain from “non-marketable equity securities,” identified as SpaceX, highlights the strategic value of Alphabet’s early investment. While Tesla grapples with public and activist scrutiny, SpaceX’s government contracts and Starlink’s consumer reach provide a buffer, though not immunity, from Musk-related controversies.

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Tesla robotaxi test details shared in recent report: 300 operators, safety tests, and more

Tesla has launched an initial robotaxi service for its employees in Austin and the San Francisco Bay Area.

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Credit: Tesla

During the Q1 2025 earnings call, Tesla executives reiterated the idea that the company will be launching a dedicated robotaxi service using its Full Self Driving (FSD) Unsupervised system this coming June.

A recent report from Insider, citing people reportedly familiar with the matter, has now provided a number of details about the preparations that Tesla has been making as it approaches its June target date.

Remote Operators

As noted by the publication, about 300 test operators have been driving through Austin city streets over the past few months using Teslas equipped with self-driving software. These efforts are reportedly part of “Project Rodeo.” Citing test drivers who are reportedly part of the program, Insider noted that Tesla’s tests involve accumulating critical miles. Test drivers are reportedly assigned to specific test routes, which include “critical” tracks where drivers are encouraged to avoid manual interventions, and “adversarial” tracks, which simulate tricky scenarios.

Tesla has launched an initial robotaxi service for its employees in Austin and the San Francisco Bay Area, though the vehicles only operate in limited areas. The vehicles also use safety drivers for now. However, Tesla has reportedly had discussions about using remote operators as safety drivers when the service goes live for consumers. Some test drivers have been moved into remote operator roles for this purpose, the publication’s sources claimed.

While Tesla is focusing on Austin and San Francisco for now, the company is reportedly also deploying test drivers in other key cities. These include Atlanta, GA, New York, NY, Seattle, WA, and Phoenix, AZ.

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Safety Tests

Tesla reportedly held training events with local first responders as part of its preparations for its robotaxi service, Insider claimed, citing documents that it had obtained. As per the publication, Tesla had met with the city’s autonomous vehicle task force, which include members of the Austin Fire Department, back in December.

Back in March, Tesla reportedly participated in about six hours of testing with local first responders, which included members of the fire department and the police, at a close test track. Around 60 drivers and vehicles were reportedly used in the test to simulate real-world traffic scenarios. 

Interestingly enough, a spokesperson from the Austin Police Department stated that Tesla did hold a testing day with emergency responders from Austin, Williamson County, as well as the Texas Department of Public Safety.

Reported Deadlines

While Tesla has been pretty open about its robotaxi service launching in Austin this June, the company is reportedly pursuing an aggressive June 1 deadline, at least internally. During meetings with Elon Musk, VP of AI software Ashok Elluswamy’s team reportedly informed the CEO that the company is on track to hit its internal deadline.

One of Insider’s sources, however, noted that the June 1 deadline is more aspirational or motivational. “A June 1 deadline makes a June 30 launch more likely,” the publication’s source noted.

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