Tesla Korea raises Model 3 and Model Y prices by up to 7 million won

Tesla Korea has raised prices on its Model 3 and Model Y by as much as 7 million won ($4,500), a day after the government decided to keep electric-vehicle purchase subsidies in place for the carmaker.

The Tesla Model 3 Premium Long Range rear-wheel drive (RWD) rose to 59.99 million won from 52.99 million won, an increase of 7 million won.

The Model 3 RWD and Model 3 Performance each climbed 5 million won, to 46.99 million won and 69.99 million won. The Model Y Premium Long Range all-wheel drive (AWD) and Model Y L each rose 3 million won, to 66.99 million won and 72.99 million won. The Model Y L is a long-wheelbase version of the Model Y. 

The subsidy decision, announced the previous day, came from the Ministry of Climate, Energy and Environment, which named 27 companies, Tesla Korea among them, as eligible for the support. The ministry selects recipients through an evaluation that weighs each company's contribution to the domestic EV industry.

Tesla Korea tied the increase to external costs rather than the subsidy.

"Pressure to raise prices has continued amid rising exchange rates and raw-material costs," the company said. "The price adjustment was unavoidable and unrelated to the subsidies."

Tesla sold 45,020 vehicles in Korea from January through May, a 250.8 percent jump from a year earlier. The Model Y accounted for 34,171 of those and the Model 3 for 8,447 and led domestic EV sales.

BY JEONG JAE-HONG [[email protected]]