In January, Tesla experienced its worst sales month in South Korea since July 2022. when selling just one electric vehicle. According to the Tesla website, there are seven dealers of the brand in this country.
The sale of a single vehicle, specifically the Model Y, marked a negative milestone for the company, according to Carisyou, a Seoul-based research firm, and the Korean Ministry of Commerce. Compared to December, the number of new electric vehicles registered in South Korea in January fell by 80%, affecting all automakers.
The decline in demand is attributed to several factors. Rising interest rates and inflation are prompting South Korean consumers to cut spending, while worries about battery fires and a shortage of fast chargers are also weighing on demand.
Tesla’s popularity is also influenced by its connection with China. Most enthusiastic South Koreans who wanted to buy their Tesla have already done so. Some people don’t like Tesla after finding out that some of them are made in China.
In addition, electric vehicle sales in South Korea are affected by strong seasonal fluctuations in demand. Many choose not to purchase vehicles in January because they prefer to wait for government subsidies to be announced.
Tesla also faces challenges regarding the sales price of its Chinese-made Model Y. In July 2023, the company set the sales price at 56,990,000 won (39,800 euros), just below the 57 million won threshold that allows it to qualify for full government funding. However, in the 2024 plan announced on Tuesday, the threshold was lowered to 55 million won, halving the subsidy for Tesla’s Model Y.