Tesla Korea hikes prices by up to 7 million won the day after EV subsidy approval

Tesla Korea raised prices on its key models by up to 7 million won ($4,520) just one day after the government confirmed the automaker would continue to receive electric vehicle purchase subsidies in the second half of the year. The move has drawn scrutiny from industry observers who question whether the price hike was timed to coincide with the subsidy decision.

According to industry sources, Tesla Korea raised the price of the Model 3 Premium Long Range RWD from 52.99 million won to 59.99 million won — an increase of 7 million won — effective Tuesday.

Prices for the Model 3 RWD and Model 3 Performance also rose by 5 million won each, to 46.99 million won and 69.99 million won, respectively.

The Model Y Premium Long Range AWD and Model Y L each climbed 3 million won, now priced at 66.99 million won and 72.99 million won.

The timing of the adjustments has drawn particular attention. The price increases came immediately after the Ministry of Climate, Environment and Energy announced Monday that Tesla Korea was among 27 companies that had passed its evaluation for second-half EV subsidy eligibility.

The ministry selected qualifying companies based on a comprehensive assessment of their technology development capabilities, supply chain contributions and environmental policy compliance. Chinese automaker BYD failed to pass the evaluation and was excluded from second-half subsidy support.

Some in the industry have suggested Tesla may have waited to confirm its subsidy status before adjusting prices. However, the ministry's evaluation focused on corporate capabilities and supply chain contributions — not vehicle pricing — meaning sales prices were not part of the assessment criteria.

Frustration is growing among some consumers. Buyers who signed contracts the previous day now face prices up to 7 million won higher than what they had agreed to, a significantly larger financial burden than anticipated. Online communities have seen an outpouring of reactions from buyers expressing shock that a single day's difference translated into hundreds of thousands of won in additional costs.

Tesla Korea said the price increases have nothing to do with the subsidy decision. "There has been ongoing pressure to raise prices due to exchange rate movements and rising raw material costs," a Tesla Korea official said. "The increase was unavoidable and unrelated to the subsidies."

Tesla has maintained strong momentum in South Korea's domestic EV market this year. Sales from January through May reached 45,020 units, a 250.8 percent increase from the same period last year. The Model Y led the way with 34,171 units sold, followed by the Model 3 at 8,447 units.

Industry watchers expect consumer price sensitivity to rise sharply now that subsidy support and a price hike have arrived simultaneously. Whether rival brands respond with their own pricing strategies — and whether Tesla can sustain its sales momentum — are seen as key variables shaping the domestic EV market in the second half of the year.