South Korean regulator probes Tesla over misleading Full Self‑Driving marketing
A South Korean consumer group is filing a complaint with the Korea Fair Trade Commission alleging Tesla marketed its Full Self‑Driving (FSD) software to buyers even though it cannot be legally used in most vehicles sold in the country. Regulators have already opened a probe into Tesla’s advertising practices, and data show that 99% of new Teslas sold in South Korea last year were China‑made and ineligible for FSD, which is only usable on about 20% of the fleet. Tesla charged a one‑off payment of 9.043 million won for the feature before switching to a monthly subscription of 150,000 won in August.
Why it matters
Material 1 says the KFTC could issue a cease‑and‑desist order, impose fines and pressure Tesla to refund customers, limiting its ability to market and sell FSD. Material 3 notes that the regulatory and reputational risk adds to the company’s overall valuation concerns and could modestly affect software revenue.
Key facts
- 1The Korea Fair Trade Commission opened a probe earlier this year into Tesla’s advertising of its Full Self‑Driving software. finimize.com
- 299% of new Teslas sold in South Korea last year could not legally use Full Self‑Driving. finimize.com
- 3Only about 20% of Teslas registered in South Korea can legally use Full Self‑Driving, those manufactured in the United States. investing.com
- 4Tesla charged a lump‑sum payment of 9.043 million won (approximately $6,726) for Full Self‑Driving. investing.com
- 5Tesla sold more than 170,000 Shanghai‑built vehicles in South Korea since 2023. investing.com
- 6The consumer group Citizens United for Consumer Sovereignty seeks a cease‑and‑desist order, administrative fines and a referral to state investigators. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.