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 launch of new EVs by competitors.
According to the automotive 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 adjustment, dropping by 9.4 million won from 69.39 million won to 59.99 million won. The Model Y Premium Long Range AWD model is now being sold for 59.99 million won, down 3.15 million won from 63.14 million won, while the Model Y Premium RWD model is priced at 49.99 million won, a reduction of 3 million won.
This is Tesla's second price cut this year. In April, Tesla launched a facelifted version of the Model Y, lowering its price by about 7 million won compared to the previous model. Analysts say this strategy aims to meet the criteria for domestic EV subsidies and lower the perceived purchase price for consumers, thereby reducing the barrier to purchase.
The price cuts are already reflected in sales performance. Tesla recorded cumulative domestic sales of about 55,594 units through November last year, more than doubling compared to the same period the previous year. This figure ranks third after BMW (70,541 units) and Mercedes-Benz (60,260 units).
Industry experts predict that if a large number of consumers who had hesitated to buy electric vehicles due to price concerns now enter the market, Tesla could potentially surpass the sales of BMW and Mercedes-Benz.
Additionally, since November, Tesla has enhanced the appeal of its vehicles by equipping the U.S.-made full-size sedan Model S and full-size SUV Model X with the advanced driver-assistance system FSD (Full Self-Driving).
Tesla is also preparing to launch a premium long-range rear-wheel-drive (RWD) trim of the Model 3 with significantly extended driving range early next year. This model recently received domestic certification, and with a single-charge range of 551 km, it is considered more competitive than previous versions. Industry observers interpret the current price cuts as a preemptive move ahead of the new trim's release.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
