Back in July, Reuters released a bombshell report documenting how Tesla not only spent a decade falsely inflating the range of their EVs, but created teams dedicated to bullshitting Tesla customers who called in to complain about it. If you recall, Reuters noted how these teams would have a little, adorable party every time they got a pissed off user to cancel a scheduled service call. Usually by lying to them:
“Inside the Nevada team’s office, some employees celebrated canceling service appointments by putting their phones on mute and striking a metal xylophone, triggering applause from coworkers who sometimes stood on desks. The team often closed hundreds of cases a week and staffers were tracked on their average number of diverted appointments per day.”
The story managed to stay in the headlines for all of a day or two, quickly supplanted by gossip surrounding a non-existent Elon Musk Mark Zuckerberg fist fight.
But here in reality, Tesla’s routine misrepresentation of their product (and almost joyous gaslighting of their paying customers) has caught the eye of federal regulators, who are now investigating the company for fraudulent behavior:
“federal prosecutors have opened a probe into Tesla’s alleged range-exaggerating scheme, which involved rigging its cars’ software to show an inflated range projection that would then abruptly switch to an accurate projection once the battery dipped below 50% charged. Tesla also reportedly created an entire secret “diversion team” to dissuade customers who had noticed the problem from scheduling service center appointments.”
This pretty clearly meets the threshold definition of “unfair and deceptive” under the FTC Act, so this shouldn’t be that hard of a case. Of course, whether it results in any sort of meaningful penalties or fines is another matter entirely. It’s very clear Musk historically hasn’t been very worried about what’s left of the U.S. regulatory and consumer protection apparatus holding him accountable for… anything.
Still, it’s yet another problem for a company that’s facing a flood of new competitors with an aging product line. And it’s another case thrown in Tesla’s lap on top of the glacially-moving inquiry into the growing pile of corpses caused by obvious misrepresentation of under-cooked “self driving” technology, and an investigation into Musk covertly using Tesla funds to build himself a glass mansion.
Source: Feds Probing Tesla For Lying About EV Ranges, Bullshitting Customers Who Complained | Techdirt
Robin Edgar
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