Tesla faces potential subsidy loss in South Korea amid claims of battery failures

Tesla is under growing pressure in South Korea after thousands of its electric vehicles (EVs) were found to have battery malfunctions that prevent charging — a problem that could jeopardize the company’s eligibility for government subsidies.

According to data obtained by the Korea JoongAng Daily, a total of 4,351 Tesla vehicles in the country have reported 4,637 incidents of a malfunction known as the BMS_a079 error since 2017. The issue, which originates from Tesla’s Battery Management System (BMS), has led to widespread frustration among owners and growing scrutiny from regulators.

The BMS error triggers a warning reading, “Unable to charge — maximum charge level reached.” When this occurs, the system limits the battery’s maximum charge to 50 percent to prevent overheating or potential fires, leaving many vehicles with severely reduced range and resale value.

The malfunction appears to be most common in 2021 models, which account for roughly two-thirds of all cases. Of these, the Model Y is most affected, with nearly 1,944 cases — or about 22 percent of the year’s total Model Y sales in Korea. The Model 3 reported around 1,047 cases, equal to about 12 percent of its 2021 sales.

Adding to to the issue, over half of the affected vehicles were fitted with remanufactured batteries instead of new ones. These refurbished units are built from salvageable cells taken from defective or returned Teslas, tested, and reassembled at the factory.

However, many owners claim the replacements deliver shorter driving ranges or experience the same failures again.

The Ministry of Environment has demanded Tesla Korea provide a clear response and solution to the issue, warning that continued silence could lead to the withdrawal of EV subsidies. “We cannot justify providing public funds for vehicles that disadvantage consumers,” an official overseeing the program told the publication.

Despite calls for a voluntary recall or free replacement program, Tesla has yet to issue a formal response.

The controversy comes at a time when Tesla maintains strong market momentum in South Korea. The automaker has sold over 134,000 vehicles in the country since its debut, with the Model Y ranking as the best-selling EV in the first half of 2025. That trend continued into the second half of the year with the automaker having its strongest sales month ever in the country, delivering a record-breaking 7,974 vehicles in August.

South Korea was also the first international market for the Cybertruck, where sales launched in late August.

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