Fraud and Violation of the Automobile Management Act Charges
[Asia Economy Reporter Oh Gyumin] The police have decided not to prosecute the world's largest electric vehicle company Tesla over allegations that it concealed defects in its car door handles and sold the vehicles.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 28th that Tesla Korea, Tesla headquarters, and Elon Musk, Tesla's CEO, who were accused of fraud and violations of the Automobile Management Act in mid-last month, were not prosecuted due to insufficient evidence.
Last November, the police received cases from the Ministry of Land, Infrastructure and Transport regarding Tesla vehicles whose doors would not open and required repairs. At that time, the police obtained a search warrant and secured materials. After analyzing the materials, the police concluded that there was not enough evidence to prove the charges and decided not to prosecute due to lack of suspicion.
On June 22 of last year, the Consumer Sovereignty Citizens' Association filed a complaint with the prosecution against Tesla Korea and others, stating, "Tesla was aware in advance of defects such as the touch-type door handles on the Model X and the hidden popup type on the Model S that interfere with safe driving, yet concealed these defects and failed to take corrective action, continuing unethical business practices that prioritize economic profit over consumer safety and lives."
In addition, they also filed complaints regarding ▲illegal wireless software updates (OTA updates) ▲false, exaggerated advertising and concealment of defects. The case was assigned to the Seoul Metropolitan Police Agency via the Gangnam Police Station from the Seoul Central District Prosecutors' Office.
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