To Receive More Subsidies... Tesla Model Y Price Reduced by 2 Million Won

Lowered Prices Within Subsidy Cap for Box Office Success
14,000 Units Sold in 4 Months Last Year

The price of the Tesla Model Y has been reduced by 2 million KRW, allowing buyers to receive a slightly higher electric vehicle subsidy this year.

According to Tesla's website on the 15th, the price of the Model Y Rear-Wheel Drive (RWD) has been lowered to 54.99 million KRW, a 2 million KRW decrease from before. This appears to be in response to the government's electric vehicle subsidy revision announced on the 7th. With this revision, the maximum sales price eligible for a 100% subsidy has dropped from 57 million KRW to 55 million KRW.

However, since this year's revision calculates subsidies differently based on battery density and recyclability, it is expected to be difficult to receive the maximum national subsidy of 6.5 million KRW.

Previously, the China-made Model Y RWD launched by Tesla Korea gained great popularity starting from September last year due to its excellent "price-performance ratio." Equipped with a lithium iron phosphate (LFP) battery, the price was reduced by about 20 million KRW and set at 56.99 million KRW, just below the subsidy cap of 57 million KRW at the time. According to Kaizyu Data Research Institute, the Model Y's domestic sales last year reached 13,885 units, a 91.6% surge compared to the previous year. Within four months of the price reduction, it became the third best-selling imported car after the Mercedes-Benz E-Class (23,640 units) and BMW 5 Series (20,492 units).

Meanwhile, not only Tesla but also Volkswagen Korea lowered the price of the electric vehicle ID.4 from 56.9 million KRW to 54.9 million KRW, a 2 million KRW reduction. Polestar Korea also adjusted the price of the electric sedan Polestar 2 down by 1 million KRW to 54.9 million KRW.