Fact Check: "Under current rules, a similar breach of practice would have resulted in a fine ranging from 500,000 to 10.2 million kroner for Tesla."
What We Know
The claim refers to potential fines that Tesla could face under current regulations for misleading marketing practices. According to a report by The Local, Tesla's Danish subsidiary was fined for misleading marketing, but the fine was limited due to a rule change that occurred in 2022. This change ties the size of fines to a company's turnover. The report states that prior to this rule, a similar breach could have resulted in a significantly larger fine, potentially in the range of 500,000 to 10.2 million kroner, depending on the severity and nature of the violation.
Additionally, the Securities and Exchange Commission (SEC) previously charged Tesla with failing to have proper disclosure controls related to CEO Elon Musk's tweets, which caused market disruption. However, the specifics of fines related to this charge were not mentioned in the context of the Danish marketing practices.
Analysis
The claim about the potential fines for Tesla is supported by the information from the Danish consumer ombudsman, which indicates that under the current rules, the fines are indeed linked to the company's turnover. The report specifies that Tesla's turnover in Denmark was nearly 1.2 billion kroner in 2019, suggesting that the fines could be substantial if the breach occurred under the new regulations. However, the exact range of 500,000 to 10.2 million kroner is not explicitly confirmed in the report; it is inferred based on the context of previous fines and the company's revenue.
The reliability of the source from The Local is generally considered credible as it reports on official actions taken by regulatory bodies. However, it is important to note that the claim lacks direct citations from regulatory documents that specify the fine amounts, making it somewhat speculative.
Moreover, the SEC's involvement with Tesla primarily relates to securities fraud rather than marketing practices, which could lead to confusion regarding the context of fines. The SEC's penalties were fixed at $20 million each for Musk and Tesla, which does not directly correlate with the Danish fine structure discussed in the claim.
Conclusion
Needs Research. While there is some basis for the claim regarding potential fines under current rules, the specific range of 500,000 to 10.2 million kroner lacks direct confirmation from regulatory sources. The context of the fines is also complicated by the distinction between different types of regulatory breaches (marketing vs. securities fraud). Further investigation into the specific regulatory framework and any official statements from Danish authorities would be necessary to fully substantiate the claim.
