An Idaho-based dealership has filed a lawsuit against Monarch Tractor, claiming the California electric tractor startup failed to deliver on promises that its vehicles could operate autonomously.
Burks Tractor, which purchased ten Monarch tractors in early 2024, alleges in the complaint that the machines “continue to experience significant problems and do not operate autonomously.” The lawsuit, originally filed in September in Idaho state court and now moved to federal court, cites breach of contract and alleged warranty violations.
The dealer claims Monarch “expressly represented” the tractors would be fully autonomous, with demo videos showing them performing autonomous tasks. “Upon receiving the tractors, Burks Tractor discovered that the tractors did not perform as represented and were unable to operate autonomously,” the complaint states. Attempts by Monarch’s sales team to resolve the issues reportedly failed, and the dealer says it received limited follow-up support.
Monarch has denied the allegations in a court filing. The company’s CEO, Praveen Penmetsa, and a company lawyer did not respond to requests for comment.
Monarch Tractor, which markets its vehicles as “driver optional,” has faced operational challenges in recent years, including multiple rounds of layoffs and the repurposing of its Ohio manufacturing facility into an AI data center. The company has been trying to pivot toward software and technology licensing while maintaining its electric tractor business.
Burks Tractor paid $773,088 for the vehicles and financed the purchase, including additional spare parts. The dealership says it has repeatedly requested that Monarch take back the allegedly defective tractors, but the company has refused.