According to Bloomberg reports, Tesla sold only one electric vehicle in South Korea in January. Sales of the popular Model Y, an SUV, were the lowest since July 2022, when the automaker failed to record a single sale in the country. This drop in sales is due to a number of factors, including safety concerns, high prices, and a lack of charging infrastructure.
Concerns about battery fires and a lack of fast charging stations have dampened overall demand for electric cars in South Korea. Another factor is the economic situation, in which higher interest rates and inflation are forcing consumers to limit their spending, Bloomberg clarifies.
South Koreans also fear quality problems at Tesla due to Chinese production
According to Lee Hang-Koo, director of the Jeonbuk Institute of Automotive Convergence Technology, enthusiasm for electric cars is waning in South Korea. Many early adopters have already purchased electric cars, and mass-market consumers are not yet ready to purchase such vehicles.
Tesla's popularity is also affected by its ties to China and possible quality problems in this context. Lee told Bloomberg: “Some people don't like Tesla anymore after finding out that some of them are made in China.”
Waiting for government subsidies by 2024
Elon Musk's company also faces challenges related to government subsidies in South Korea. According to Tesla, many buyers are hesitant to purchase an electric car until government subsidies are finalized for this year.
This continues the negative news about Tesla. It was just announced earlier this week that SAP would be removing Tesla from its list of company vehicles.
Get informed, understand, make the right decisionsHere you can get general information about current financial news. Every Friday as a newsletter.
*Fields marked with an * are required