Tesla raises car prices, shifts FSD to subscription: 150,000 won a month from August

Tesla Korea is switching the sales model for its Full Self-Driving (Supervised) software in South Korea from a one-time purchase to a monthly subscription. The move comes after the automaker drew consumer backlash by raising prices on select Model 3 and Model Y trims by as much as 7 million won ($4,650), and now lowers the barrier to entry for its driver-assistance software.

Tesla Korea announced Friday through its official blog that the purchasing structure for FSD and Enhanced Autopilot (EAP) will change starting Aug. 10. FSD will transition from a one-time payment of 9.04 million won to a monthly subscription of 150,000 won. One-time purchases remain available through Aug. 9, after which new users will only be able to subscribe on a month-to-month basis.

Customers who have already paid the lump sum for FSD will keep the option as before. Those who have not yet ordered a new vehicle, or who own a Tesla but have not purchased FSD, can still buy it outright through Aug. 9 and must subscribe from Aug. 10 onward.

EAP holders will receive a discounted subscription rate. Customers who already own EAP and subscribe to FSD (Supervised) from Aug. 10 will be charged 75,000 won per month. The sales structure for EAP itself is also changing: new EAP purchases will no longer be available for US-made vehicles from Aug. 10, while Chinese-made vehicles will still allow new EAP purchases at 4.52 million won.

The change is widely seen as a pricing strategy to broaden FSD adoption. The previous lump-sum price of around 9 million won was a steep upfront commitment for most consumers. A 150,000-won monthly subscription could attract drivers who make long trips frequently or want to try the feature for a limited period before committing.

Industry analysts say Tesla is doubling down on a software subscription model that generates recurring revenue after the initial vehicle sale. With competition in the electric vehicle market intensifying and vehicle prices growing more volatile, the strategy aims to monetize software features separately from the car itself to diversify revenue streams.

The subscription shift could also ripple into the used-car market. FSD Lite is currently being rolled out sequentially for US-made, HW3-based Model 3 and Model Y vehicles. Buyers of qualifying used US-made Teslas can now access FSD through a monthly subscription without purchasing a new car. Since FSD Lite's launch, interest in used US-made HW3 Model 3 and Model Y listings has reportedly grown, with prices on some units trending upward.

The scarcity of the same hardware-software combination in the new-car market adds to the appeal of older US-made models. Given that Chinese-made vehicles account for a large share of domestic sales, used US-made Model 3 and Model Y units could serve as the most accessible option for consumers eager to try FSD Lite right away.

By contrast, the Shanghai-made Model 3 and Model Y — which dominate domestic sales — remain outside the scope of the benefit for now. US-made vehicles can be sold in South Korea through self-certification against American safety standards, allowing new features to be introduced relatively quickly. Chinese-made vehicles, however, must meet domestic safety regulations, which could limit FSD availability until the relevant rules are updated.

Meanwhile, Tesla has been rapidly expanding its footprint in South Korea's electric vehicle market this year. The Model Y propelled the brand to the top spot in imported car sales, but Tesla drew criticism when it raised prices on key models almost immediately after they were confirmed eligible for the second-half EV subsidy program.

Tesla Korea raised the price of the Model 3 rear-wheel-drive variant from 41.99 million won to 46.99 million won — a 5 million won increase — and the Model 3 Long Range from 52.99 million won to 59.99 million won, a 7 million won hike, on July 1. The Model Y Long Range AWD went up from 63.99 million won to 66.99 million won, and the six-seat Model Y L rose from 69.99 million won to 72.99 million won, each by 3 million won. The timing — coming just as government subsidy eligibility was confirmed — prompted complaints from consumers who said the increases effectively absorbed the subsidy benefit.