Tesla Faces Federal Probe Over Exaggerated Range Claims: Report
Federal prosecutors have initiated an investigation into Tesla’s performance claims following allegations that the electric carmaker exaggerated the potential driving distance of its vehicles, as reported by Reuters. The Wall Street Journal revealed that Tesla cars frequently failed to achieve the advertised range estimates, with experts validating these claims by testing or studying the vehicles. The report suggested that Tesla developed algorithms around ten years ago to generate overly optimistic in-dash driving range estimates. In response to customers’ disappointment and the overwhelming number of service appointments, Tesla allegedly established a Diversion Team to cancel range-related appointments.
According to insiders familiar with the matter, Tesla implemented this special internal team in order to manage the influx of service bookings related to battery performance and range. Owners who sought to check battery health would receive notifications stating that their vehicles were operating fine, and Tesla would conveniently ask them to cancel their appointments. The carmaker seemingly assembled the Diversion Team because its service centers were unable to keep up with the demands of dissatisfied customers whose vehicles failed to live up to the expected range numbers.
The Reuters investigation discovered that Tesla manipulated the range software on its vehicles to display inflated distances. The software would provide more accurate range estimates when the battery level fell below 50 percent charge. Additionally, the vehicles possessed a range buffer that allowed for around 15 miles of driving after the range estimate reached zero. Interestingly, other electric vehicle models demonstrated more precise range estimates, with the Hyundai Kona even underestimating its range.
It is important to note that while these revelations may be shocking and potentially detrimental to Tesla’s reputation, Reuters was unable to confirm whether the automaker continues to engage in such practices today. Furthermore, the alleged range manipulation occurred during Tesla’s earlier years when only the Roadster and Model S were available. Present-day Tesla vehicles still offer generous ranges; however, third-party testers have discovered flaws in accounting for temperature changes.
Tesla has encountered legal action in South Korea due to its vehicles experiencing a loss of more than 25 percent range in cold weather conditions. It should be noted that Tesla is not the only electric vehicle manufacturer impacted by temperature extremes, as they affect the range of all EVs. Driving style, road conditions, terrain, and the use of climate controls can also contribute to reduced range.
In addition to the ongoing federal auto safety probe investigating Tesla’s Autopilot driver assistance feature, the U.S. Attorney’s office in Manhattan is reportedly conducting an investigation into the company’s use of funds for an undisclosed project referred to internally as a house for CEO Elon Musk. The U.S. Securities and Exchange Commission has also commenced a civil probe, according to the Journal.
As Tesla faces multiple investigations, it remains to be seen how these developments will impact the pioneering electric carmaker. With transparency and accurate range estimates being key concerns for both regulators and customers, Tesla will likely face increased scrutiny in the coming months.
