Tesla Sparks Controversy Over Sudden Price Hike on First Day of Subsidy Payments

[Financial News] Tesla Korea sharply raised the prices of its main domestic models, the Tesla Model 3 and Tesla Model Y, on the 1st, the same day the government began paying out second-half electric vehicle subsidies.
According to the auto industry on the 2nd, Tesla Korea increased the prices of major trims of the Tesla Model 3 and Tesla Model Y by as much as 7 million won, effective from the 1st.
The price of the Tesla Model 3 Long Range rose by 7 million won in a single day, from 52.99 million won to 59.99 million won. The Tesla Model 3 Rear-wheel drive (RWD) and Performance trims were also raised by 5 million won each, to 46.99 million won and 69.99 million won, respectively.
For the Tesla Model Y, only the Premium RWD price remained unchanged at 49.99 million won. In contrast, the Long Range All-Wheel Drive (AWD) trim was raised by 3 million won, from 63.99 million won to 66.99 million won, while the six-seat Tesla Model Y L was also increased by 3 million won, from 69.99 million won to 72.99 million won.
The models that saw price increases are Tesla Korea's key products in the domestic market, ranking among the top five imported cars in cumulative sales from January through May.
Earlier, on the 30th of last month, the Ministry of Environment selected 27 of the 35 companies that applied as subsidy recipients through its evaluation for selecting operators for the electric vehicle supply project.
The ministry eased some of the criteria after accepting criticism that the evaluation standards announced in March were unfavorable to imported carmakers. Among imported brands, only China's BYD was excluded, while Tesla retained its subsidy eligibility.
However, as Tesla carried out the price hike on the first day of subsidy disbursement, criticism is mounting among shareholders and market observers over the effectiveness of the government's subsidy policy.
As public support intended to expand electric vehicle adoption is being offset by manufacturers' pricing strategies, some say the government should broaden its oversight of subsidy programs to include manufacturers' distribution and pricing policies.


sms@fnnews.com Sung Min-seo Reporter