Tesla sales are falling in the U.S. and Europe. Why has Korea seen a 250% surge?

Tesla sales in Korea skyrocketed over 100 percent to hit a record high last year in stark contrast to the carmaker’s steep decline in other major markets, plunging almost 30 percent on year in Europe and 8 percent in the United States.

The rally has gathered pace this year, with Tesla’s Model Y becoming Korea’s best-selling car across all categories and outperforming domestic giants Hyundai Motor and Kia. Its sales from January through May jumped over 250 percent from the same period a year earlier to 45,020 units.

Tesla CEO Elon Musk once again took notice and wrote, “Korea is awesome,” on X earlier this month as he shared news of Model Y’s success in the country. 

The demand is so strong in Korea that buyers often have to wait for up to a year for their vehicle, with some even opting for a quicker delivery at the cost of forfeiting part of the government subsidy. 

Koreans’ love for Tesla is particularly pronounced among younger men — a demographic that has expanded to include consumers in their 40s — and the large pool of tech-savvy early adopters. 

What is driving the frenzy, and who is fueling it?

Tesla has cultivated a particularly devoted following among younger Korean men, many of whom view the company to be not merely a carmaker but a symbol of innovation and modernity — a brand associated with technology, style and the future.

“I chose Tesla because it stands apart as a brand with its sophisticated, youthful image,” said Lee Geun-young, 38, a Seoul-based salesman who purchased a Model Y in 2021.

“It’s hard to find another […] car that delivers this level of performance at this price point, and anyone who has seriously shopped for a vehicle understands that,” he said. “Wherever I go, people tell me that my car looks great, and several people I know ended up buying one after seeing mine.”

Tesla sold 8,762 Model Ys in Korea in May, beating the Sorento, the country’s longtime best-selling model, which sold 7,836 units. In the EV segment, the Model Y’s sales were almost three times that of the Kia EV3, the second-ranked EV, according to data from the Korea Automobile Importers & Distributors Association (Kaida).

In terms of total sales, Tesla retained its position as Korea’s top-selling imported car brand for a fourth consecutive month in May, outpacing rivals BMW and Mercedes-Benz. 

Tesla’s appeal had received a boost in 2025, when the company introduced a Shanghai-made Model Y priced at 49.99 million won ($33,000), making it eligible for the full government EV subsidy. 

When applying the subsidy, customers in Seoul can buy a Model Y for roughly 47 million won — a narrow price gap compared to local options such as the long-range Hyundai Ioniq 5, which costs around 45 million won, and Kia’s EV6, which costs over 40 million won. 

Tesla was the most-registered imported car brand among Koreans in their 20s, 30s and 40s during the first 11 months of 2025, according to data from Kaida. BMW placed second, followed by Mercedes. For people in their 50s and 60s, Tesla ranked No. 3 and No. 4, respectively.

The data also revealed a pronounced gender divide. Among men, Tesla had 34,767 new registrations, ranking first in that category and outperforming BMW’s 28,211 and Mercedes-Benz’s 18,604. Among women, however, Mercedes topped the list with 12,896 new registrations, followed by BMW at 11,692. Tesla placed third with 10,433.

“Younger consumers buy Teslas in a similar way to how they purchase iPhones,” which is a “distinctly Korean approach to automobiles,” said Moon Hak-hoon, an automotive engineering professor at Osan University.

“Koreans view cars as status symbols, as something more expressive rather than purely functional assets, in contrast to overseas customers, […] who generally consider a car to be no more than a means of transportation,” Moon said. “[That mindset] is becoming increasingly trendy, and the appeal among younger buyers is expanding.”

How deep is the backlog?

The average delivery time for the Model Y in Korea is now roughly six months and, in some cases, can be as long as a year, especially since the introduction of the Model Y L.

With oil prices spiking due to the Middle East conflict, Korea has seen an unusual surge in EV sales in the first half of the year, causing government-allocated EV subsidies to be depleted at a faster-than-expected pace.

Launched in April, the Model Y L is a six-seat variant that extends the vehicle’s length by about 15 centimeters (6 inches) compared to the standard edition. It features independent second-row seating and a bench-style third row and is certified for a combined driving range of 553 kilometers (343.6 miles) per single charge. 

Korean Tesla owners even created a website to share and track their orders to predict when their cars will arrive.

The extended wait times have also fueled a secondary resale market for vehicles being traded at a premium. On Danggeun Market, a popular Korean secondhand marketplace, an undelivered Model Y L — scheduled for delivery on Thursday — was listed at 78.5 million won. 

That’s around 10 million won more than the sticker price of Model Y L, which costs 69.99 million won without any subsidies. 

Tesla’s rise in Korea has been dramatic and steady: The EV giant sold just 11,830 vehicles in the country in 2020, but that figure climbed around 410 percent to a record 59,916 in 2025. Sales in 2024 also jumped 101 percent from the previous year. 

Koreans are known to be tech-savvy. Could that be part of the story?

Korea’s reputation as an early adopter of new technology is also behind Tesla’s surging popularity.

Due to the country’s world-leading high-speed internet infrastructure and near-universal smartphone penetration, Korean consumers tend to embrace new digital services quickly, making them highly receptive to technology-driven products.

Tesla initially gained traction through its Autopilot driver-assistance system and received even more when it launched the supervised Full Self-Driving (FSD) in the Korean market earlier this year.

“The in-car infotainment features, a smartphone-like user interface and over-the-air software updates that continuously add new functions — Tesla has many strengths,” said Kim Won-sang, 32, an office worker in Seoul who describes himself as an “IT early adopter.”

“Among other carmakers, many EVs still don’t feel fully competitive yet, so Tesla naturally ranks higher in consideration,” he added.

Tesla has also addressed the lack of charging infrastructure, one of the biggest barriers behind Korean customers’ hesitation to buy EVs, by expanding its Supercharger network, which is widely lauded for its speed and reliability.

Tesla now operates more than 50 Supercharger stations across Korea at highway rest stops, shopping malls and hotels, with the V3 Supercharger delivering peak charging speeds of up to 250 kilowatts, enabling roughly 270 kilometers of range in about 15 minutes. 

How far does Korea’s Tesla obsession go?

Some of the most ardent fans place near-total trust in Tesla to the point that they dismiss or even criticize those who point out its shortcomings.

“I’ve already reached heaven using FSD. Why? Because it changed my life. It can change other people’s lives too. [Tesla is] a company […] that deserves to be the most valuable in the world,” one Korean online user who seemingly owns a Tesla wrote on X.

Kim, who bought Model 3 in 2020, attributed the fervor to a range of factors, from Musk’s eccentric social media presence to his personal narrative as a business leader — all of which, Kim said, resonates strongly with Korean consumers. 

This phenomenon is also reflected in Korean investors’ strong appetite for Tesla shares. Tesla ranks as the most widely held overseas stock among Korean retail investors, who hold roughly $23.97 billion worth of Tesla shares as of June 9, far exceeding Nvidia at $17.93 billion and Alphabet at $8.6 billion, according to the Korea Securities Depository. 

Is it all praise for Tesla?

The question now is whether Tesla can sustain its heyday in Korea, as critics point to a growing mismatch between its sales and after-sales infrastructure, particularly when it comes to servicing and repairs.

Tesla currently operates around 16 service centers nationwide, far fewer than rivals BMW, which runs 82, and Mercedes-Benz, which has 73. Even BYD, the Chinese EV giant that launched in Korea last year, operates 18.

This has caused longer repair times. Tesla Korea reported an average repair time of 23.4 days for  Battery Management System (BMS)-related issues, with one documented case stretching as long as 926 days, according to data submitted to the National Assembly’s Land, Infrastructure and Transport Committee by lawmaker Park Yong-gab in September 2025. 

The BMS_A079 error, which displays the warning “Unable to charge — maximum charge level reached,” occurs when the system detects a fault in the high-voltage battery. To avoid overheating or fire risks, charging is capped at 50 percent, significantly restricting daily usability and potentially affecting the resale value.

Tesla has also faced criticism for its abrupt pricing changes after it raised the price of the Model Y L by 5 million won within a week of its launch. The price of the long-range Model Y was also increased from 59.99 million won to 63.99 million won over the same period.

BY SARAH CHEA   [[email protected]]