Monarch Tractor has been accused of overpromising on the autonomous capabilities of its tractors, in response to a brand new lawsuit.

Burks Tractor, a dealership positioned in Idaho, has sued Monarch for breach of contract and allegedly violating its guarantee as a result of the California-based startup’s tractors have 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 Penmesta and a lawyer for the corporate didn’t reply to a request for remark. Monarch has denied the allegations in a court docket submitting.

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 hassle for Monarch.

The corporate has spent a couple of years attempting to get its tractors — that are electrical and imagined to be autonomous, or as Monarch calls it, “driver non-obligatory” — to catch on at wineries and dairy farms. However it’s gone by way of a number of rounds of layoffs during the last two years. The Ohio manufacturing unit the place its tractors have 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 could be absolutely autonomous, and the autonomy options “weren’t restricted by location or time.”

Monarch even supplied demo movies to Burks Tractor that confirmed the gear performing autonomous duties, in response to the criticism.

Burks Tractor paid Monarch $773,088 for the tractors and financed the acquisition, in response to the lawsuit, that means it’s nonetheless paying curiosity. The supplier additionally bought spare components. Monarch delivered the primary 5 tractors in April 2024, and the remaining 5 in June 2025.

The lawsuit claims that issues started straight away.

“Upon receiving the tractors, Burks Tractor found that the tractors didn’t carry out as represented and have been unable to function autonomosly,” in response to the criticism. The supplier 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 have been unable to perform autonomously indoors.” The supplier 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 substitute the faulty tractors.”

“[T]he tractors proceed to expertise important issues and don’t function autonomously,” the supplier claims within the lawsuit. Burks Tractor “demanded Monarch take again the faulty tractors, however Monarch has refused to take action.”