Tesla Korea raised prices for most Model 3 and Model Y trims on the first day of the second-half electric-vehicle subsidy program [1].
The timing of the price hikes has sparked consumer backlash, as the increases coincide exactly with the launch of government incentives designed to make electric vehicles more affordable.
According to the company, the adjustments reflect current market conditions [1]. However, the price changes vary significantly across the lineup. The Model 3 Long-Range saw the highest increase, rising by seven million KRW from 52,990,000 KRW to 59,990,000 KRW [3].
Other Model 3 variants also experienced price jumps. The rear-wheel-drive (RWD) model increased by five million KRW, moving from 41,990,000 KRW to 46,990,000 KRW [3]. Similarly, the Model 3 Performance trim rose by five million KRW, increasing from 64,990,000 KRW to 69,990,000 KRW [3].
Price adjustments were also applied to the Model Y. Both the Long-Range AWD, and the six-seat Model Y L saw increases of three million KRW [2]. Across all trims, the maximum price increase reached seven million KRW [2].
Tesla Korea did not raise the price of the Model Y Premium, which remains the best-selling trim in the domestic market [1].
The company said the price changes were necessary based on the market [1]. This move comes as South Korean consumers monitor how subsidy changes impact the final cost of ownership for high-demand electric vehicles.
“Tesla Korea raised prices for most Model 3 and Model Y trims”
By raising prices on the same day government subsidies were implemented, Tesla Korea effectively offsets a portion of the consumer benefit provided by the state. This strategy allows the company to maintain profit margins while leveraging the psychological incentive of a subsidy program to keep demand high, though it risks alienating buyers who perceive the timing as opportunistic.
