We reported that Tesla Korea recently hiked prices after the government implemented EV subsidies. Now that move has triggered calls for stricter oversight to prevent corporate exploitation of the incentive program.
The American company surprised industry watchers by qualifying for the subsidy. Since Tesla did not have a local production footprint, it was expected to be penalised during the assessment. However, other factors such as technological competitiveness, environmental impact, and safety records must have been in its favour.
Tesla is now facing criticism for the timing of the latest price raises. Analysts have warned that such actions could defeat the purpose of the incentives, as they only fill manufacturers’ coffers at the expense of the public.
The government is reportedly already taking steps to ensure the subsidy is not abused.
On its part, Tesla has claimed the price adjustment was meant to offset rising exchange rates and raw material costs. However, the excuse is not convincing many, as it was the same reason for the previous round of price increase back in April.
Notably, Tesla’s biggest EV rival, BYD, did not qualify for this EV subsidy cycle.
Tesla raised the Model 3’s price by 5 million Korean won to 46 million Korean won. The Model 3 Long Range saw the steepest rise of 7 million Korean won to 69.99 million Korean won. The Model Y Long Range AWD and Model YL added 3 million Korean won each, selling for 66.99 million Korean won and 72.99 million Korean won, respectively. However, the Model Y Premium remains unchanged.
Meanwhile, the EV maker is still the brand to beat in Korea. The Tesla Model Y was the bestselling imported car in May, with more than 7,000 units shipped into the country.
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