Monarch Tractor has been accused of overpromising on the autonomous capabilities of its tractors, in line with a brand new lawsuit.
Burks Tractor, a dealership situated in Idaho, has sued Monarch for breach of contract and allegedly violating its guarantee as a result of the California-based startup’s tractors had been “unable to function autonomously.” The dealership additionally says the ten tractors it bought “proceed to expertise important issues,” and calls them “faulty.”
Monarch Tractor CEO Praveen Penmetsa and a lawyer for the corporate didn’t reply to a request for remark. Monarch has denied the allegations in a court docket filing.
The beforehand unreported lawsuit, which was filed in September in Idaho state court docket and has since moved to federal court docket, is the newest bother for Monarch.
The corporate has spent a number of years attempting to get its tractors — that are electrical and purported to be autonomous, or as Monarch calls it, “driver optionally available” — to catch on at wineries and dairy farms. However it’s gone via a number of rounds of layoffs during the last two years. The Ohio manufacturing facility the place its tractors had been being constructed by Foxconn is now being renovated into an AI information middle, and Monarch has been attempting to pivot to software program and tech licensing.
Burks Tractor says in its criticism that it bought the ten tractors from Monarch in early 2024 with the intent of being one of many California startup’s first sellers. Throughout these negotiations, Burks Tractor claims Monarch “expressly represented” the tractors can be absolutely autonomous, and the autonomy options “weren’t restricted by location or time.”
Monarch even offered demo movies to Burks Tractor that confirmed the tools performing autonomous duties, in line with the criticism.
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Burks Tractor paid Monarch $773,088 for the tractors and financed the acquisition, in line with the lawsuit, that means it’s nonetheless paying curiosity. The vendor additionally bought spare elements. Monarch delivered the primary 5 tractors in April 2024 and the remaining 5 in June 2025.
The lawsuit claims that issues started immediately.
“Upon receiving the tractors, Burks Tractor found that the tractors didn’t carry out as represented and had been unable to function autonomosly,” in line with the criticism. The vendor flagged this to Monarch, and the startup’s gross sales workforce “labored with Burks Tractor to attempt to make the autonomous tractors work autonomously,” however failed.
Burks Tractor claims Monarch’s gross sales workforce then admitted “each verbally and in writing” the tractors’ autonomy “was restricted and the tractors had been unable to perform autonomously indoors.” The vendor then claims it went “months with none assist or follow-up to make the autonomous tractors work as promised,” regardless of “quite a few makes an attempt” to have Monarch “restore or exchange the faulty tractors.”
“[T]he tractors proceed to expertise important issues and don’t function autonomously,” the vendor claims within the lawsuit. Burks Tractor “demanded Monarch take again the faulty tractors, however Monarch has refused to take action.”
