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Tesla risks losing subsidies in South Korea after Model 3 dominates local EV market

A Tesla Model 3 driving at night. (Photo: Andres GE)

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Tesla may be building some serious momentum in South Korea, but it appears that efforts may be underway that could become a roadblock for the American electric car maker. In an announcement on Sunday, the South Korean government stated that it intends to recalibrate its EV subsidy program, which could very well disqualify Tesla’s vehicles from qualifying for the country’s generous incentives. 

Interestingly enough, the government’s recent announcement comes after Tesla dominated the country’s electric vehicle market this year. As noted in a report from The Korea Herald, nearly half of the subsidies granted by the government from January to June 2020 were for Teslas. Thanks to strong sales of its vehicles, especially the Model 3 sedan, Tesla ended up devouring 43% of South Korea’s total EV subsidies for the first half of the year.  

With this initiative in mind, the Minister of Environment is expected to revise its existing calculation system for electric vehicle subsidies by October following discussions with municipalities, related experts, and concerned associations. These revisions are expected to remove premium EV brands from qualifying for the government incentives, such as Tesla.

To discuss the upcoming revisions to the country’s EV subsidy program, the ministry has stated that it will be holding a meeting on Monday with 11 automakers, including Hyundai Motor and Kia Motors, two of South Korea’s most prominent carmakers. Choi Jong-won, head of Air Quality Policy Bureau of the Ministry of Environment, spoke about electric cars and their role in the country’s “Green New Deal,” President Moon Jae-in’s green growth program. 

“For our ‘Green New Deal’ initiative to yield results, it’s crucial for EVs to be deployed without any setback. The ministry will consult and collaborate closely with related businesses and groups in the industry,” Choi said. 

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When Tesla announced that it was formally launching the Model 3 last year, it became evident that buyers of the Model 3 Standard Range Plus could get as much as $16,500 off the electric sedan’s $43,000 starting price in the country, thanks to incentives from the national and provincial governments. This gave the vehicle a price that could be adjusted to as low as $27,000 per unit. That’s quite a deal for a premium all-electric car that has basic Autopilot installed. 

The Tesla Model 3 has since become the most-imported electric car in South Korea, with data from the Korea Automobile Manufacturer Association, along with the Korea Automobile Importers & Distributors Association, revealing a 40.1% surge in electric car sales from January to April, and much of this is due to the Model 3. In a later report last month, the KAMA noted that Tesla’s annual sales have attained a 1,500% increase, also thanks to the all-electric sedan. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Semi program Director teases major improvements

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Credit: Tesla

Tesla Semi Program Director Dan Priestly teased the major improvements to the all-electric Class 8 truck on Thursday night, following the company’s decision to overhaul the design earlier this year.

Priestley said he drove the Semi on Thursday, and the improvements appear to be welcomed by one of the minds behind the project. “Our customers are going to love it,” he concluded.

The small detail does not seem like much, but it is coming from someone who has been involved in the development of the truck from A to Z. Priestley has been involved in the Semi program since November 2015 and has slowly worked his way through the ranks, and currently stands as the Director of the program.

Tesla Semi undergoes major redesign as dedicated factory preps for deliveries

Tesla made some major changes to the Semi design as it announced at the 2025 Annual Shareholder Meeting that it changed the look and design to welcome improvements in efficiency.

Initially, Tesla adopted the blade-like light bar for the Semi, similar to the one that is present on the Model Y Premium and the Cybertruck.

Additionally, there are some slight aesthetic changes to help with efficiency, including a redesigned bumper with improved aero channels, a smaller wraparound windshield, and a smoother roofline for better aero performance.

All of these changes came as the company’s Semi Factory, which is located on Gigafactory Nevada’s property, was finishing up construction in preparation for initial production phases, as Tesla is planning to ramp up manufacturing next year. CEO Elon Musk has said the Semi has attracted “ridiculous demand.”

The Semi has already gathered many large companies that have signed up to buy units, including Frito-Lay and PepsiCo., which have been helping Tesla test the vehicle in a pilot program to test range, efficiency, and other important metrics that will be a major selling point.

Tesla will be the Semi’s first user, though, and the truck will help solve some of the company’s logistics needs in the coming years.

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Tesla dominates in the UK with Model Y and Model 3 leading the way

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Credit: Tesla China

Tesla is dominating in the United Kingdom so far through 2025, and with about two weeks left in the year, the Model Y and Model 3 are leading the way.

The Model Y and Model 3 are the two best-selling electric vehicles in the United Kingdom, which is comprised of England, Scotland, Wales, and Northern Ireland, and it’s not particularly close.

According to data gathered by EU-EVs, the Model Y is sitting at 18,890 units for the year, while the Model 3 is slightly behind with 16,361 sales for the year so far.

The next best-selling EV is the Audi Q4 e-tron at 10,287 units, lagging significantly behind but ahead of other models like the BMW i4 and the Audi Q6 e-tron.

The Model Y has tasted significant success in the global market, but it has dominated in large markets like Europe and the United States.

For years, it’s been a car that has fit the bill of exactly what consumers need: a perfect combination of luxury, space, and sustainability.

Both vehicles are going to see decreases in sales compared to 2024; the Model Y was the best-selling car last year, but it sold 32,610 units in the UK. Meanwhile, the Model 3 had reached 17,272 units, which will keep it right on par with last year.

Tesla announces major milestone in the United Kingdom

Tesla sold 50,090 units in the market last year, and it’s about 8,000 units shy of last year’s pace. It also had a stronger market share last year with 13.2 percent of the sales in the market. With two weeks left in 2025, Tesla has a 9.6 percent market share, leading Volkswagen with 8 percent.

The company likely felt some impact from CEO Elon Musk’s involvement with the Trump administration and, more specifically, his role with DOGE. However, it is worth mentioning that some months saw stronger consumer demand than others. For example, sales were up over 20 percent in February. A 14 percent increase followed this in June.

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Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

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Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

Tesla partners with Lemonade for new insurance program

Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

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