"God of Business?" Tesla Korea, Prices for Model 3 and Model Y Hiked by Up to 7 Million Won on Day Subsidy Announcement

*This content was translated by AI.

Tesla Korea raised prices for its flagship vehicles, the Model 3 and Model Y, by up to 7 million won on the 1st, the day the second-half electric vehicle subsidies began. In this price adjustment, only the Model Y Premium trim maintained its previous price, while other major trims saw simultaneous increases ranging from 3 million to 7 million won. With prices surging significantly on the very day subsidies commenced, criticism is spreading among consumers that government subsidies have ultimately degenerated into a tool for manufacturer price hikes.

According to Tesla Korea's new pricing policy, the electric sedan Model 3 Rear-Wheel Drive (RWD) saw a 5 million won increase from 41.99 million won to 46.99 million won; the Long Range increased by 7 million won from 52.99 million won to 59.99 million won; and the Performance trim increased by 5 million won from 64.99 million won to 69.99 million won. For the electric sports utility vehicle (SUV) Model Y, only the Premium RWD trim maintained its price at 49.99 million won, while the Long Range AWD increased by 3 million won from 63.99 million won to 66.99 million won, and the 6th-seater Model Y L increased by 3 million won from 69.99 million won to 72.99 million won.

The vehicles with price hikes include the Model Y Premium, which ranked first among imported cars in cumulative sales from January to May this year with 28,449 units, and the Model 3 Long Range and Model Y Long Range, which are key sales models included in the top five imported cars.

This price increase coincided with the day the Ministry of Climate, Energy and Environment announced the companies eligible for second-half subsidies after completing its first-ever "Evaluation of Electric Vehicle Subsidy Program Implementation" this year. The government evaluated technical development capabilities and supply chain contributions, selecting 27 out of 35 companies as support targets. In the passenger electric vehicle sector, only China's BYD was excluded from the previous subsidy targets, while U.S. Tesla was included. Although concerns were raised among Tesla consumers that the evaluation criteria publicly released by the government in March were unfavorable to the imported car industry, the relaxed criteria were applied, and Tesla ultimately became eligible for subsidies.

Online LINE communities and some consumers are criticizing that while the government relaxed standards to provide subsidy benefits tailored to Tesla, Tesla significantly raised prices on the very day subsidies were distributed, meaning the manufacturer actually captured the benefits. Tesla also increased prices for major models by up to 5 million won in April to coincide with the government's restructuring of the subsidy system, continuing the controversy over the effectiveness of pricing policies and the subsidy system.

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*This content was translated by AI.