Tesla's Range Claims Questioned Again — This Time By The DOJ

Tesla Inc. is under investigation by the U.S. Department of Justice (DOJ) for potentially exaggerating the range of its electric vehicles (EVs). 

According to a July 27 report from Reuters, Tesla created a special "diversion team" to cancel service appointments from customers who complained about range issues. The report alleges that Tesla employees were directed to cancel range-related appointments. Reuters reported the team was created because the Tesla service centers were flooded with complaints from owners who expected range performance that aligned with the company's advertised ranges. 

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The report also alleged that the drivers of Teslas were often shown real-time range data by their car's software that were not achievable in real-world conditions, such as driving in cold weather or hilly terrain.

In 2020, the Environmental Protection Agency (EPA) disputed Tesla CEO Elon Musk's claim that the agency had made a mistake in its test of the Model S sedan, which resulted in the agency noting a lower range for the vehicle. A year later, a Norwegian court ordered Tesla to pay thousands of dollars to customers who reported slower charging times and reduced rage after the company issued a software update. 

Earlier this year, South Korea fined Tesla $2.2 million for range exaggerations before the government pitched for a Tesla Gigafactory in the spring of 2023. 

The EPA mandated that Tesla reduce the range estimates by an average of 3% for six of its vehicles beginning in the 2020 model year.

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Last spring, the automotive industry publication Car and Driver tested several automakers' range claims to provide insights for potential EV buyers. The publication found German automakers Audi AG, BMW, Mercedes-Benz and Porsche publicized conservative ranges that were often met or exceeded by the publication's drivers. It found that Tesla published ambitious range numbers that were on average two times greater than most other EV makers. 

Another company in the battery space is Paleblue, which offers USB-rechargeable lithium batteries it hopes will outperform the competition. The batteries can be used up to 1,000 times.

Seattle-based EV analytics firm Recurrent analyzed information gathered from more than 8,000 Teslas between 2022 and 2023. It found that the dashboard range indicators did not adjust their estimates in response to fluctuating outside temperatures, which can significantly impact the overall driving range. Cold temperatures shapely reduce EV range because of the reactions they cause inside the batteries. 

The DOJ's investigation is in its early stages, and it is unclear what charges, if any, the company could face. If the investigation finds Tesla intentionally exaggerated the range of its vehicles, it could impact the company's reputation and bottom line. It could also lead to lawsuits from customers who feel Tesla misrepresented its range estimates. The company also could face regulatory actions, including fines or vehicle recalls.

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