Monarch Tractor Sued Over Autonomous Feature Claims

Lawsuit Alleges Monarch Tractor Misled Dealership on Autonomy

A recent lawsuit has been filed against Monarch Tractor, alleging the company overstated the autonomous capabilities of its agricultural machinery.

Breach of Contract Claim

Burks Tractor, an Idaho-based dealership, initiated legal action against Monarch, citing breach of contract and warranty violations. The core of the claim centers around the assertion that the tractors, developed by the California startup, were “unable to operate autonomously” as initially represented.

Furthermore, the dealership reports that the 10 tractors it procured “continue to experience significant problems,” leading to their classification as “defective.”

Company Response

Requests for comment directed to Praveen Penmetsa, CEO of Monarch Tractor, and legal counsel representing the company, went unanswered. However, Monarch has formally denied the allegations within a court filing.

Lawsuit Details and Timeline

The lawsuit, initially filed in Idaho state court in September and subsequently transferred to federal court, represents the latest in a series of challenges for Monarch Tractor.

For several years, the company has been striving to establish its electric and purportedly autonomous – or “driver optional,” as Monarch terms it – tractors within the winery and dairy farming sectors.

Recent Company Shifts

However, the company has undergone multiple rounds of workforce reductions over the past two years. The Ohio manufacturing facility, previously operated in partnership with Foxconn, is currently undergoing renovations to become an AI data center.

Consequently, Monarch is actively pursuing a strategic shift towards software and technology licensing.

Dealership's Account of Representations

According to the complaint, Burks Tractor purchased the 10 tractors in early 2024 with the intention of becoming an early dealer for the California-based company.

During negotiations, Burks Tractor alleges that Monarch “expressly represented” that the tractors would possess full autonomous functionality, unconstrained by location or time.

Demonstration and Purchase

Monarch reportedly provided demonstration videos to Burks Tractor showcasing the equipment performing autonomous tasks. The dealership paid $773,088 for the tractors and secured financing for the purchase, continuing to accrue interest.

Spare parts were also acquired alongside the tractors. Initial deliveries of five tractors occurred in April 2024, with the remaining five arriving in June 2025.

Emergence of Problems

The lawsuit details that issues surfaced immediately upon receipt of the tractors.

“Upon receiving the tractors, Burks Tractor discovered that the tractors did not perform as represented and were unable to operate autonomously,” the complaint states. The dealership promptly notified Monarch, and the startup’s sales team attempted to rectify the issue, but without success.

Admissions and Lack of Support

Burks Tractor claims that Monarch’s sales team subsequently admitted, “both verbally and in writing,” that the tractors’ autonomy was limited and that they could not function autonomously indoors.

The dealer further alleges a prolonged period of inadequate support, despite “numerous attempts” to secure repairs or replacements for the “defective tractors.”

Current Status and Demand

“[T]he tractors continue to experience significant problems and do not operate autonomously,” the lawsuit asserts. Burks Tractor demanded that Monarch repurchase the defective tractors, a request that was reportedly denied.