Tesla has reduced the prices of its major electric vehicle models sold in Korea by up to 9.4 million won. This move is interpreted as a strategy to secure price competitiveness and expand its market share in Korea, amid slowing global demand for electric vehicles and the upcoming release of new EVs by competitors.
According to the automobile industry on January 1, Tesla Korea posted the reduced prices for the mid-size electric sedan Model 3 and the mid-size electric SUV Model Y on its official website starting December 31.
The Model 3 Performance AWD model saw the largest price cut, dropping by 9.4 million won from 69.39 million won to 59.99 million won. The Model Y Premium Long Range AWD is now being sold at 59.99 million won, down 3.15 million won from the previous price of 63.14 million won, while the Model Y Premium RWD is set at 49.99 million won, a reduction of 3 million won.
This is the second price reduction by Tesla this year. In April, Tesla launched a partially updated Model Y, lowering its price by about 7 million won compared to the previous model. Analysts say this strategy is aimed at both meeting domestic EV subsidy requirements and lowering the perceived purchase barrier for consumers by reducing the actual cost.
The impact of these price cuts is reflected in sales performance. By November last year, Tesla's cumulative domestic sales reached about 55,594 units, more than doubling compared to the same period the previous year. This figure ranks third, following BMW (70,541 units) and Mercedes-Benz (60,260 units).
Industry insiders predict that if a large number of consumers who had hesitated to purchase an EV due to price concerns enter the market, Tesla may even surpass the sales figures of BMW and Mercedes-Benz.
In addition, since November, Tesla has enhanced its product lineup by equipping the U.S.-produced full-size sedan Model S and full-size SUV Model X with the advanced driver assistance system (ADAS) FSD (Full Self-Driving).
Tesla is also preparing to launch a premium long-range rear-wheel drive (RWD) trim of the Model 3 with a significantly increased driving range in early next year. This model recently completed domestic certification and is evaluated as highly competitive, offering a driving range of 551 kilometers per charge, which is a substantial improvement over previous models. Industry sources interpret the latest price reduction as a preemptive move ahead of the new trim's release.
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