
LAS VEGAS (AP) Tesla Motors Inc. has agreed to pay a $250,000 fine to the federal government for failing to notify consumers about the cost of their second-hand cars.
The company agreed to the $250 and a warning label on all used Tesla models in the U.S. from 2019 to 2025 that was not attached to the original model, the Consumer Product Safety Commission announced Wednesday.
The penalty was part of an agreement reached with the CPSC after the agency received complaints from consumers that their cars were at risk of catching fire.
The settlement is a second-degree misdemeanor and will result in a $50,000 criminal fine.
The Consumer Product Review Council, the group that oversees car recalls, will investigate the incident.
Tesla is the world’s largest maker of electric cars, but the company has had trouble getting regulators to buy in to its Model S and Model X electric vehicles.
In 2018, the U