Title: Tesla Faces Allegations of Inflating Range Estimates, Misleading Customers
Subtitle: Investigation reveals systematic deception by the electric car manufacturer
Date: July 24, 2023
Washington, DC – A recent investigation conducted by Reuters has raised serious concerns regarding Tesla’s claims about the range of its electric vehicles (EVs). The report suggests that Tesla has been systematically inflating range estimates, misleading its customers. The allegations of deception have sparked outrage among EV owners and potential buyers who value the promise of long-range capabilities.
According to the Reuters investigation, Tesla intentionally rigged its cars’ range estimation software to provide “optimistic” projections on a full charge. This misleading information helped the company market its vehicles more effectively. However, once the battery charge fell below 50%, the estimates would suddenly drop, leaving drivers at risk of being stranded.
In an effort to address the issue, Tesla introduced a “safety buffer” feature that allowed the vehicle to travel an additional 24 km (15 miles) even when the battery charge appeared to be at zero. Interestingly, instructions to display exaggerated range figures reportedly came directly from Tesla’s CEO, Elon Musk.
As the number of complaints regarding range discrepancies increased, Tesla allegedly established a secret team in Las Vegas tasked with canceling service appointments related to range issues. This diversion team received over 2,000 requests per week and was authorized to close 750 cases to reduce the backlog at Tesla service centers. The team was reportedly incentivized to celebrate each canceled appointment, saving the company $1,000 per case.
The Reuters report also highlights that Tesla is not alone in falling short of its advertised range. A study conducted earlier this year revealed that EVs from various brands, on average, fell 12.5% below their promised range. However, Tesla’s models ranked as the worst performers, with a discrepancy of 26%.
Although US law requires EVs to list their range estimates on EPA stickers, which serve as a comparison tool with internal combustion vehicles, manufacturers have some flexibility in arriving at these figures. Legacy automakers typically rely on the standard EPA formula, while Tesla conducts its own tests. EPA audits have only resulted in a marginal decrease in Tesla’s estimated ranges.
This is not the first time Tesla has faced allegations of exaggerating its vehicle’s capabilities. Earlier this year, the Korea Fair Trade Commission fined Tesla $2.1 million for falsely advertising range estimates. The cars were found to lose over 50% of their autonomy in cold climates, leading to demands for an acknowledgment of misleading customers.
The latest revelations about Tesla’s inflated range estimates have further eroded trust in the brand’s claims. The company now faces mounting criticism and potential legal consequences as disgruntled customers and regulators demand accountability.
As the electric vehicle market continues to grow rapidly, consumers are increasingly discerning about the capabilities of EVs. The accuracy and reliability of range estimates are crucial factors for any potential buyer.
(Image source: Nathan Howard/Getty Images)