South Korea's anti-monopoly regulator announced on January 3 local time that it had decided to fine Tesla, an American electric car manufacturer, 2.85 billion won, or approximately 15.4 million yuan. The penalty was imposed because Tesla published "false, exaggerated, and deceptive advertising content."
South Korea's anti-monopoly regulator stated that, beginning in August 2019, advertisements on Tesla's official website exaggerated the battery life of its electric vehicles, leading consumers to believe that the battery life mentioned in the advertisement can only be ideal(20.98, 0.58, 2.84%). Furthermore, Tesla advertisements exaggerate the energy consumption of its electric vehicles as well as the function of charging piles.
Tesla has yet to respond to South Korea's punishment.
On the same day, the Korean Fair Trade Commission stated that since August 2019, Tesla's advertisements on its official website have suggested that its electric vehicles can travel hundreds of kilometers on a single charge, but only in cold weather. In light of this, the actual cruising range of the relevant models has decreased by up to 50.5% when compared to the advertisement. Furthermore, Tesla has misrepresented the performance of its products and the savings they can achieve when compared to gasoline vehicles.
Tesla's stock price plummeted again after the US stock market closed on January 3. Tesla (TSLA) closed at $108.1, a 12.24% drop, with a market capitalization of $341.35 billion. Overnight, the market value dropped by approximately 47.6 billion yuan (approximately 329.2 billion yuan).
According to brokerage China, Tesla's latest delivery data has also had a significant negative impact on the stock price. Tesla announced Q4 and full-year delivery data for 2022 on January 3, Beijing time. According to data, Tesla's global delivery volume in the fourth quarter of 2022 was 405,000 vehicles, which was lower than the market expectation of 429,000 vehicles.
Several major banks have reduced their target prices for Tesla. Among them, JPMorgan Chase(135.12, 1.02, 0.76%) analyst Ryan Brinkman reduced his target price on Tesla from $150 to $125 while maintaining his bullish outlook on the stock. Rating for being underweight.
Tesla's stock price has plummeted, making Musk the year's biggest loser. According to "Forbes" data, Musk's personal wealth will be reduced by more than 115 billion US dollars by 2022.
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