In January, Elon Musk's Tesla sold only one electric vehicle in South Korea. The reason why is because

In January, Elon Musk's Tesla sold only one electric vehicle in South Korea. The reason why is because

South Korean automakers are seeing a drop in interest in electric vehicles (EVs) as customers reduce their spending due to rising interest rates and inflation.

In January, Tesla Inc. only sold one electric car in South Korea due to a lack of charging infrastructure, price issues, and safety concerns.

The sole Model Y SUV produced by the firm had its lowest sales month since July 2022, when the Austin, Texas-based carmaker sold zero cars, according to information from the Korean Trade Ministry and Seoul-based researcher Carisue. According to Carisue statistics, the quantity of newly registered electric vehicles in Korea decreased by 80% in January over December, affecting all automakers.

Experience the thrill of cricket like never before—only on HT. Investigate right now!

South Korean automakers are seeing a downturn in the market for electric vehicles (EVs) as customers curtail their spending due to high loan rates and inflation. Additionally, shortages of fast chargers and worries about battery fires are also diminishing demand. With its China-made Model Y being one of the best-selling models last year, Tesla's poor January sales indicate a significant reversal for the company.

The director of the Jeonbuk Institute of Automotive Convergence Technology, Lee Hang-koo, claims that although many early adopters have already bought EVs, mass-market buyers have not yet done so. He added Tesla's connections to China have also harmed the company's appeal.

"Most Koreans who desired to buy Tesla cars have bought one," Lee said. He said that buyers are worried about the production quality. "Recently, some people don't like Teslas because certain of them are made in China," he stated.

Strong seasonal swings in demand also impact EV sales in Korea. Lee claims that a lot of individuals decide not to purchase cars in January in order to wait for government discounts to be announced.

A Tesla representative in Korea told Bloomberg News that customers postponed buying electric vehicles (EVs) until the discounts were verified.

There are also unfavorable factors for Tesla. A Chinese-made Model Y's selling price was set by the manufacturer in July 2023 at 56,990,000 won ($43,000), which is less than the 57 million won level that enables automobiles to be eligible for full government subsidies.

The amount has been cut to 55 million won in the 2024 plan, which was unveiled on Tuesday, so half the incentive for Tesla's Model Y.