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Tesla’s $25K car will force EV rivals to make painful sacrifices: industry experts
Industry experts from South Korea have noted that Tesla’s upcoming $25,0000 vehicle, which is expected to debut in about three years, will likely force the hand of the company’s domestic rivals. With such a vehicle in the market, automakers like Hyundai and Kia would have to come up with comparably-priced electric cars that could compete with Tesla in terms of price and features. Such initiatives would require vast resources to pull off.
In a statement to The Korea Bizwire, the industry experts noted that local EV manufacturers would likely need about four or five years to come up with a vehicle that’s on par with Tesla’s $25,000 car. Elon Musk has noted that the $25,000 Tesla will still feature great performance and tech like the company’s existing S3XY vehicle lineup. That’s a pretty high bar for rivals to meet, considering Tesla’s battery and tech advantage.
Current average market prices of EVs in South Korea excluding subsidies range between 45.6-48.8 million won (about $38,900-$41,600) for medium-sized models and about 39.2 million to 41.7 million won for smaller cars. With this in mind, the idea of a premium EV priced below 30 million won would likely be possible only if South Korean battery makers like LG Chem decide to match their prices with Tesla.
If domestic battery suppliers are unable to offer this, countries like South Korea would likely have to deal with an EV market that’s dominated by Tesla’s $25,000 car. In a statement to the publication, Lee Hang-gu, a senior researcher at the Korea Automotive Technology Institute, noted that companies like Hyundai, which already have an EV program, could see losses if they cut production costs to a level that matches Tesla.
“Hyundai Motor will lose 12 trillion won if domestic car makers cut production costs by 30 to 40 percent to compete with Tesla,” Lee said.
The upcoming arrival of Tesla’s $25,000 car may end up fostering innovation among its domestic rivals as well. Kwon Soon-woo, a researcher at SK Securities Co, explained that local electric car makers could catch up to Tesla’s price and level, but the automakers would have to sacrifice their profits in exchange for rapid technical breakthroughs in the coming years. But even then, Tesla’s $25,000 vehicle would still likely beat its rivals to market.
“If automakers sacrifice profits in exchange for a breakthrough in the market, EVs that cost less than 30 million won may be available in four to five years,” Kwon said.
Tesla’s $25,000 car has captured the interest of the EV market simply because such a vehicle could effectively transform Tesla into one of the most dominant automakers in the industry. With its price, Tesla would be able to cater to a much wider demographic than before, allowing the company to render even affordable ICE cars irrelevant. Such a vehicle may very well be successful in locations like South Korea and other surrounding Asian countries where affordable, practical vehicles are preferred.
News
Tesla rival Xpeng shows off new flying car concept for 2027 release

Tesla rival Xpeng’s flying car unit has been rebranded as Aridge, and it recently showed off its new flying car concept that has 500 kilometers (310 miles) of range and can travel at speeds of up to 360 kilometers per hour (224 MPH).
In Dubai earlier this week, Abridge showed off its new High-Speed Long-Range Full Tilt-Rotor Flying Car, which it aims to release in the Middle East as soon as 2027.
CEO and Vice President Du Chao said at the event on Monday that Aridge will pioneer new categories of flying cars under the brand, which was formerly called Aeroht. Aridge will focus on delivering cutting-edge, low-altitude products, aiming to make these types of aircraft more popular in the coming years.
At the event in Dubai, Aridge showcased its Land Aircraft Carrier, which completed the first overseas public demonstration of a manned flight for the modular flying car, CNEV Post reported.

Credit: Aridge
So far, it has already accumulated 7,000 cumulative orders for the vehicle. 600 of them are going to the United Arab Emirates’ Ali & Sons Group, Qatar’s Almana Group, Kuwait’s AlSayer, and the Chinese General Chamber of Commerce UAE.
It was not the only thing Aridge showcased at the event, either. It also has a long-range hybrid flying car called the A868. This is the concept with the 500-kilometer (310-mile) range rating and the 360 kilometers per hour (224 MPH) top speed.

Credit: Aridge
The A868 will target long-distance travel needs for consumers and will work alongside the Land Aircraft Carrier to build diversified low-altitude application scenarios that would be beneficial from a civilian and commercial standpoint.
The vehicles will be built at a new facility that was completed at the end of September, which is located in Guangzhou. It will be able to build 10,000 units with full-scale production and delivery scheduled to take off in 2026.
News
Tesla ramps production of its ‘new’ models at Giga Texas
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer.

Tesla is ramping up production of its ‘new’ Model Y Standard at Gigafactory Texas just over a week after it first announced the vehicle on October 7.
Earlier this month, Tesla launched the Tesla Model 3 and Model Y “Standard,” their release of what it calls its affordable models. They are priced under $40,000, and although there was some noise surrounding the skepticism that they’re actually “affordable,” it appears things have been moving in the right direction.
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer:
News: the @Tesla Model Y Standard production is well underway at Giga Texas today!
This consistent with what I was told to expect during the unveiling day last week!
The outbound lot had many Premium Model Y’s and @cybertruck too!
More coming soon! pic.twitter.com/WU489QKPLB
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) October 16, 2025
The new Standard Tesla models are technically the company’s response to losing the $7,500 EV tax credit, which significantly impacts any company manufacturing electric vehicles.
However, it seems the loss of the credit is impacting others much more than it is Tesla.
As General Motors and Ford are scaling back their EV efforts because it is beginning to hurt their checkbooks, Tesla is moving forward with its roadmap to catalyze annual growth from a delivery perspective. While GM, Ford, and Stellantis are all known for their vehicles, Tesla is known for its prowess as a car company, an AI company, and a Robotics entity.
Elon Musk was right all along about Tesla’s rivals and EV subsidies
Tesla should have other vehicles coming in the next few years, especially as the Cybercab is evidently moving along with its preliminary processes, like crash testing and overall operational assessment.
It has been spotted at the Fremont Factory several times over the past couple of weeks, hinting that the vehicle could begin production sometime next year.
News
Tesla set to be impacted greatly in one of its strongest markets

Tesla could be greatly impacted in one of its strongest markets as the government is ready to eliminate a main subsidy for electric vehicles over the next two years.
In Norway, EV concentrations are among the strongest in the world, with over 98 percent of all new cars sold in September being electric powertrains. This has been a long-standing trend in the Nordic region, as countries like Iceland and Sweden are also highly inclined to buy EVs.
However, the Norwegian government is ready to abandon a subsidy program it has in place, as it has effectively achieved what it set out to do: turn consumers to sustainability.
This week, Norway’s Finance Minister, Jens Stoltenberg, said it is time to consider phasing out the benefits that are given to those consumers who choose to buy an EV.
Stoltenberg said this week (via Reuters):
“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved. Therefore, the time is ripe to phase out the benefits.”
EV subsidies in Norway include reduced value-added tax (VAT) on cheaper models, lower road and toll fees, and even free parking in some areas.
The government also launched programs that would reduce taxes for companies and fleets. Individuals are also exempt from the annual circulation tax and fuel-related taxes.
In 2026, changes will already be made. Norway will lower its EV tax exemption to any vehicle priced at over 300,000 crowns ($29,789.40), down from the current 500,000, which equates to about $49,500.
This would eliminate each of the Tesla Model Y’s trim levels from tax exemption status. In 2027, the VAT exemptions will be completely removed. Not a single EV on the market will be able to help owners escape from tax-exempt status.
There is some pushback on the potential loss of subsidies and benefits, and some groups believe that the loss of the programs will regress the progress EVs have made.
Christina Bu, head of the Norwegian EV Association, said:
“I worry that sudden and major changes will make more people choose fossil-fuel cars again, and I think everyone agrees that we don’t want to go back there.”
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