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Tesla could benefit as South Korea pushes to update EV incentives

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South Korea is the world’s 11th largest car market according to IHS Automotive but 5th in sales of luxury cars like the Mercedes S Class and BMW 7 Series. That means it could be an important market for Tesla’s Model S and Model X. The country ranks in the top six in terms of the number of reservations for the upcoming Tesla Model 3 midsize sedan.

South Korea offers buyers of electric cars a subsidy equivalent to 22 million won or approximately $18,000 dollars but the incentive only applies to cars that can be recharged in 10 hours or less using 220 volt household current.The rule was enacted in 2012 and was intended to encourage manufacturers to limit the charging time required for electric cars. But electric cars today have much larger batteries than they did then. Those larger batteries may take more than 10 hours to recharge on household current, making them ineligible for the subsidy.

Minister of Environment Cho Kyeung-kyu says it may be time for his country to revisit that rule. A ministry official tells Reuters that a government appointed panel will submit recommendations “by June, but it could be much earlier. We haven’t decided whether to keep the rule alive, or kill it, or come up with complementary rules.”

Last month, opposition lawmaker Lee Sang-don called the rule an “unreasonable non-tariff barrier” that discourages drivers from considering long range EVs. “The rule is meaningless,” Kim Pil-soo, president of the Korean Electric Vehicle Association, told Reuters. “We have kept telling the government they should remove it.” In October, Tesla Vice President of North Asia and SEA Nicolas Villeger said the company is working with the government to change a “unique rule” that does not reflect advances in battery technology.

Tesla is about to open its first showroom in the upscale Starfield shopping district east of Seoul. In fact, it was supposed to be open before the end of 2016, but a sign in the window saying “Opening Soon” was still in the window as of last week. A delay in obtaining the permits required to begin sales has pushed the opening to early next year, a person familiar with the matter told Reuters.

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Tesla has been accepting orders from Korean customers since August for its Model S and Model X as well as reservations for the Model 3. With the present rule in place, a car that the company expects to sell strongly in the South Korean luxury car market — the Model S 90D — will not be eligible for the electric car incentive because its battery is too large to recharge in less than 10 hours on household current.

Chinese automaker BYD also intends to offer its long range electric car, the e6, for sale in Korea but has delayed starting sales until the incentive rule is amended. The e6 also will require more than 10 hours to fully recharge on household current.

Sales of electric cars in South Korea have been weak so far. To date, there are only about 4,000 EVs registered in the entire country despite the generous subsidy. South Korea has been proactive when it comes to building charging infrastructure. There are 750 fast chargers available to Korean EV drivers at present and the government plans to increase that number to 3,000 by 2020. Tesla is also planning to construct Supercharger locations in Seoul, Busan and Pyeongchang.

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Tesla Model Y L gains V2L capabilities with software update

The 2025.32.300 update, which is rolling out to Model Y L vehicles in China, introduces several notable additions.

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Tesla has quietly added Vehicle-to-Load (V2L) functionality to the Model Y L through its latest over-the-air update in China, giving owners the ability to power external devices directly from their EVs.

The addition of the feature was highlighted by Tesla in its release notes for China’s 2025.32.300 update.

Model Y L gains V2L and other convenience upgrades

The 2025.32.300 update, which is rolling out to Model Y L vehicles in China, introduces several notable additions. First among them is an “external discharge function,” which enables V2L capability through an official adapter that Tesla plans to release later.

The feature should enable the Model Y L to power appliances, tools, or possibly even other EVs, making it extra useful for camping trips or the occasional power outages. 

Other improvements include a lower temperature limit for Dog Mode, customizable low-battery settings to conserve energy while parked, and expanded personalization for the vehicle’s “Rave Cave” entertainment feature. Tesla noted that certain functions may vary depending on vehicle configuration, and rollout timing could differ by region.

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Model Y L is surging in China’s SUV rankings

Despite being new in the market, the Model Y L is already making some waves in  China’s top-selling mid-to-large SUVs lists. Data from Yiche showed that Tesla sold 8,221 units in September, securing fourth place in the segment behind the Leapmotor C16, Li Auto L6, and the Xiaomi YU7.

The Model Y L’s rapid ascent highlighted its strong market appeal despite a higher price point than most local competitors. Interestingly enough, the Xiaomi YU7, which is positioned closer to the standard Model Y with its five-seat configuration, topped the rankings with 22,244 units sold in September.

With Tesla’s continued free software upgrades, as well as its features like Full Self-Driving (Supervised), however, the Model Y L may have a chance at climbing China’s lists for the best-selling mid-to-large SUVs.

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Investor's Corner

Elon Musk’s 2025 pay package gets support from Tesla’s biggest bull

ARK Invest founder Cathie Wood has previously stated that she is quite confident that the vote on Elon Musk’s 2025 Performance Award would pass.

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Credit: Tesla Singapore/X

Cathie Wood, CEO of ARK Invest and one of Tesla’s most ardent bulls, reiterated her support for Elon Musk’s 2025 CEO Performance Award. 

Wood highlighted that Musk’s leadership attracts incredible talent, and it has allowed the companies he leads such as Tesla to become disruptors in their respective fields.

ARK Invest supports Musk’s leadership

Elon Musk’s 2025 CEO Performance Award has received a mixed reception. Proxy firms such as Glass Lewis and Institutional Shareholder Services (ISS) have stated that they would be voting against Musk’s pay package. Other entities, such as the State Board of Administration of Florida (SBA), have stated that they would be voting in favor of Tesla’s proposals. 

ARK Invest founder Cathie Wood, for her part, has previously stated that she is quite confident that the vote on Elon Musk’s 2025 Performance Award would pass. She also stated that a favorable result to the vote for Musk’s 2025 pay plan would be beneficial for Tesla.

“Elon Musk is the most productive human being on earth. And a human being who attracts incredible talent, people who want to solve the world’s hardest problems. This is a win-win for all of us if Elon succeeds this time,” Wood stated. Musk appreciated Wood’s comments, stating, “Thanks Cathie!” In a post on X.

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ARK Invest has been one of Tesla’s most loyal bulls

Tesla is ARK Invest’s single largest holding, with the firm holding an estimated $1 billion worth of TSLA, as noted in an Insider report. Wood previously said she expects the approval of Musk’s pay package to trigger “super-exponential growth” for the automaker, as new products like the Cybercab and Optimus expand Tesla’s offerings.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI, and it’s not stopping with Robotaxis. There’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” Wood stated during an appearance at Steven Bartlett’s podcast The Diary Of A CEO.

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Investor's Corner

Tesla VP for AI software makes a case for upcoming Elon Musk shareholder vote

Elluswamy reiterated the idea that Tesla is indeed at a critical point in its history.

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Credit: Tesla

Tesla’s Director of Autopilot Software and VP of AI Software Ashok Elluswamy has shared his thoughts about CEO Elon Musk’s 2025 performance award. While the executive typically discusses topics related to the company’s tech and AI initiaives, Elluswamy made it a point to make a case for Musk’s proposed pay package. 

Tesla’s VP for AI Software shares his insights 

In a post on X, Elluswamy reiterated the idea that Tesla is indeed at a critical point in its history. This is because the company is changing from a leader in electric vehicles and a major player in the energy storage market to a powerhouse pioneer in robotics that are powered by real-world AI.  As per the executive, Elon Musk’s leadership of Tesla is more relevant now more than ever. He also reported an X article he previously wrote about Elon Musk and Tesla.

“This note regarding the importance of Elon leading Tesla is more relevant now than ever. Tesla is at a critical juncture, as it is metamorphosing into the world leader in robotics. Creating large-scale, useful robots requires expertise across engineering design, manufacturing, real-world AI software, chips for AI, and more. Elon is, quite likely, the only person on Earth with deep skills and the right instincts across all these domains,” Elluswamy stated.

A push to support Musk’s 2025 performance award

In recent weeks, Tesla executives such as Board Chair Robyn Denholm have been encouraging TSLA shareholders to vote in favor of Elon Musk’s 2025 performance award, as well as other proposals that the company’s directors have argued are critical to the future of the company. These proposals, Tesla executives noted, are necessary to ensure that the company can achieve the ambitious targets of Elon Musk’s Master Plan Part IV. 

Elon Musk’s pay package, as well as the company’s proposals, would be decided at the upcoming 2025 Annual Shareholders Meeting, which would be held at Giga Texas on November 6, 2025. Needless to say, Tesla’s future might very well be decided during the event. 

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