A recent lawsuit alleges that Monarch Tractor exaggerated the autonomous features of its tractors.
Burks Tractor, an Idaho-based dealership, has filed a lawsuit against Monarch, accusing the California startup of breaching their contract and violating its warranty, claiming the tractors could not function autonomously. The dealership also asserts that all 10 tractors it bought are plagued with ongoing major issues and describes them as “defective.”
Neither Monarch Tractor CEO Praveen Penmetsa nor the company’s legal counsel responded to requests for comment. Monarch has formally denied the claims in court documents.
This lawsuit, which was initially filed in Idaho state court in September and later transferred to federal court, is the latest setback for Monarch.
Monarch has spent several years attempting to popularize its electric, so-called “driver optional” tractors among vineyards and dairy farms. However, the company has faced multiple rounds of layoffs in the past two years. The Ohio facility where Foxconn manufactured its tractors is now being converted into an AI data center, and Monarch is shifting its focus toward software and technology licensing.
According to the complaint, Burks Tractor bought 10 tractors from Monarch in early 2024, aiming to become one of the startup’s first dealers. During negotiations, Burks Tractor alleges Monarch specifically promised the tractors would be fully autonomous, with no restrictions on when or where the autonomy features could be used.
The complaint also states that Monarch shared demonstration videos with Burks Tractor, showing the tractors performing tasks autonomously.
Burks Tractor reportedly paid Monarch $773,088 for the tractors and financed the deal, so it is still accruing interest. The dealership also bought spare parts. Monarch delivered the first five tractors in April 2024 and the remaining five in June 2025.
According to the lawsuit, issues arose immediately after delivery.
The complaint states, “After receiving the tractors, Burks Tractor found that they did not perform as advertised and could not operate autonomously.” The dealership notified Monarch, and the company’s sales team attempted to resolve the issues but was unsuccessful.
Burks Tractor further alleges that Monarch’s sales representatives later acknowledged, both verbally and in writing, that the tractors’ autonomous capabilities were limited and that they could not operate autonomously indoors. The dealership claims it then went months without any assistance or follow-up from Monarch, despite repeatedly requesting repairs or replacements for the faulty tractors.
The lawsuit asserts that the tractors are still experiencing major issues and are not operating autonomously. Burks Tractor requested Monarch to take back the defective equipment, but Monarch declined.
