Tesla Confirms Domestic Launch Prices and Opens Orders
Base Model 51.99 Million KRW · Long-Range Model 59.99 Million KRW
Electric Vehicle Demand Slows and Subsidies Decrease, Aggressive Pricing Strategy Adopted
Tesla launched the facelifted Model 3 in Korea on the 4th. It introduced the new model after about seven years since its first debut in 2017.
The price of the new car is 51.99 million KRW for the base rear-wheel-drive model and 59.99 million KRW for the long-range version. This is about 7 to 8 million KRW cheaper compared to the past. It is interpreted that the price was lowered due to the use of cheaper batteries produced at the Shanghai factory in China and the clear signs of a slowdown in electric vehicle demand recently.
It is cheaper than when vehicle deliveries began in Korea in 2019 (base model 52.39 million KRW). In the early days of the Model 3 launch, all units were produced in the U.S. factory and exported worldwide. When vehicle supply was unstable due to COVID-19, domestic sales prices exceeded 70 million KRW (base model 70.34 million KRW, long-range 84.69 million KRW). Compared to that time, the base model price has dropped by more than 18 million KRW, and the long-range model by nearly 25 million KRW.
Although battery prices have decreased, the industry views Tesla’s pricing as aggressive considering the addition of various convenience features and inflation rates. Tesla has frequently adjusted new car prices according to market demand and subsidy policies. In 2021, when the Korean government set the subsidy price cap at 60 million KRW, Tesla lowered the price to 59.99 million KRW (long-range model).
The exterior design, including the headlamps, has been partially changed, giving a sleeker impression. Some convenience features such as automatic unlocking and driving mode settings have also been added. The base rear-wheel-drive model uses a lithium iron phosphate (LFP) battery and can travel 382 km on a single charge. Its top speed is 200 km/h, and it accelerates from 0 to 100 km/h in 6.1 seconds.
The long-range model uses all-wheel drive and a ternary battery. It can travel 488 km on a single charge, has a top speed of 200 km/h, and accelerates from 0 to 100 km/h in 4.4 seconds.
Customers who previously ordered the U.S.-made Model 3 can transfer their contracts if they wish. It is reported that thousands of units were unloaded domestically in mid-last month, drawing attention to whether electric vehicle demand will increase. The Model 3, along with the Model Y, is one of Tesla’s two volume models. The government purchase subsidy has not yet been announced. Although the base model price falls within the 100% subsidy range, the subsidy amount will be determined based on battery efficiency and is expected to be similar to that of the Model Y.
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