Tesla is under investigation by US authorities following claims the electric carmaker has been misleading customers over the driving range of its vehicles.
The Department of Justice (DOJ) has sent subpoenas to Tesla ordering it to share “certain matters” related to the vehicle range of its cars, Elon Musk’s car company said on Monday.
In a stock market disclosure, Tesla said US authorities were demanding information from the company on personal benefits and personnel decisions, as well as about the range of its electric cars.
It warned that the investigation risked having a “material adverse impact” on the company if US government officials decide to pursue enforcement action.
In July, Reuters reported Tesla cars had been displaying favourable battery estimates on its car dashboards that did not reflect real-life performance in a practice that started a decade ago. The report also alleged Tesla had created a “diversion team” to cancel appointments from drivers complaining about the range of their cars.
In August, the company was sued by drivers who claimed their cars were reaching only half their advertised range. One driver, James Porter, alleged his vehicle lost approximately 182 miles of range, despite only driving 92 miles.
The legal claim added: “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.”
In a court filing earlier this month, Tesla said it intended to seek to have the claims dismissed.
Tesla has also been fined by officials in South Korea after a study found its cars were delivering just half their claimed range in cold weather conditions.
Like petrol cars, electric vehicles can lose mileage more quickly in colder conditions. They can also lose power when running their air conditioning or heating.
It comes as a further blow to Mr Musk, with US officials already scrutinising Tesla’s claims about its self-driving car technology. The US highways agency is also examining dozens of crashes involving Tesla’s Autopilot driver assistance tools.
In February, the US National Highway Traffic Safety Administration ordered Tesla to issue a software update to 363,000 vehicles running Tesla’s “full self-driving” system over concerns they may be ignoring stop signs and speed limits. Tesla said it disagreed with the findings but had made the update “out of an abundance of caution”.
US officials have also reportedly been probing the use of Tesla funds to build a glass house for Mr Musk in Texas and whether this had been properly disclosed to investors.
Of the latest investigations, Tesla said: “To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred.”
Shares in Tesla fell 3.4pc in early trading in the US, although later recovered to trade flat at $212 (£173). The company’s shares are up 97pc so far this year despite concerns over waning demand for new EVs.
Electric car companies are facing increased scrutiny over their claims about range and recharging in advertising and marketing materials.
The UK’s Advertising Standards Authority banned two adverts from Hyundai and Toyota over exaggerated claims about recharging their electric cars. Both companies argued their adverts were not misleading.
Last week, Tesla reported revenues of $23.3bn, slightly below Wall Street expectations. Its profits came in at $1.85bn for the three months ending in September, lower than the previous quarter and down 44pc on the same period a year earlier.
The company has been trimming the prices of its electric vehicles to keep boosting sales amid stiff competition from new rivals, such as China’s BYD. Next month, Mr Musk plans to launch deliveries of a long-delayed pick-up, the Tesla Cybertruck.
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