Tesla Inc (NASDAQ:TSLA)’s Big Problem in Korea: No EV Incentive


Tesla Inc (NASDAQ:TSLA) officially launched in South Korea last year, but the company is still facing few problems, according to a report from Electrek.

Story continues below

One of the biggest problems is Tesla buyers in the country do not qualify for the very generous electric vehicle incentive of up to $18,328 million offered by the government.

“For an EV to be eligible for the incentive, the electric car needs to be able to fully charge in under 10 hours using a standard outlet,” according to the report.

This means Tesla Model S and X and other vehicles with larger packs and longer ranges are at a disadvantage compared to vehicles with small battery packs and shorter ranges. Tesla’s vehicles can charge under 10 hours, but with level 2 chargers not using standard outlets.

Reports suggest that the South Korean government is considering changing the rule as Tesla and BYD are coming to the country with bigger battery packs.

In last August, Tesla started taking orders for the Model S and X. It also formed a partnership with the Shinsegae Group to deploy charging stations and open a store at their new Starfield Hanam mall.

According to a report from The Korea Herald, Tesla Inc (NASDAQ:TSLA) completed the registration process with the Korean Ministry of Land, Infrastructure, and Transport. The electric car maker is expected to begin selling vehicles in the country this May.

“Directly-run service centers will be in charge of the vehicle’s core functions such as charging and autonomous driving, while supplementary services such as for exterior repairs will be handled by subcontractors,” the Herald reported, citing the ministry.

According to industry insiders, Tesla is likely to be a major game-changer in the Korea’s rapidly expanding eco-friendly car market.

An ad to help with our costs