Monarch Tractor sued over tractors that were ‘unable to operate autonomously’

Monarch Tractor is facing a new lawsuit alleging that the company overstated the autonomous capabilities of its electric tractors.

Burks Tractor, an Idaho-based dealership, has filed suit accusing Monarch of breach of contract and warranty violations after discovering that the tractors it purchased were “unable to operate autonomously.” The dealership says all 10 units “continue to experience significant problems” and describes them as “defective.”

Monarch Tractor CEO Praveen Penmetsa and the company’s attorney did not respond to requests for comment, although Monarch has denied the allegations in a recent court filing.

The lawsuit — filed initially in Idaho state court in September before being moved to federal court — adds to a growing list of challenges for Monarch. The company has spent years trying to position its electric, “driver-optional” tractors as a solution for wineries and dairy farms. Still, it has undergone multiple layoffs over the last two years. Its Ohio manufacturing facility, previously operated by Foxconn, is now being converted into an AI data centre, and Monarch has shifted its focus to software and technology licensing.

According to the complaint, Burks Tractor bought the 10 tractors in early 2024 to become one of Monarch’s first dealers. The dealership says Monarch “expressly represented” that the tractors were fully autonomous, with no restrictions on where or when they could operate. Monarch also provided demo videos that showed the tractors performing autonomous tasks.

Burks Tractor paid $773,088 for the equipment and financed the purchase, meaning it is still paying interest. It also purchased spare parts. Monarch delivered five tractors in April 2024 and the remaining five in June 2025.

The dealership says issues surfaced immediately.
Upon delivery, the tractors “did not perform as represented and were unable to operate autonomously.” Monarch’s sales team attempted to resolve the issues but was unsuccessful, according to the complaint.

Burks Tractor further claims that Monarch later admitted — verbally and in writing — that the tractors’ autonomy was limited and did not function indoors. After that, the dealership says it went “months without any support or follow-up,” despite repeatedly requesting repairs or replacements.

The lawsuit states that the tractors still “do not operate autonomously” and continue to experience “significant problems.” Burks Tractor says it asked Monarch to take back the defective units, but the company refused.