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.
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.
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Tesla gets new information request from NHTSA on Robotaxi rollout
Tesla has been contacted by the NHTSA regarding plans for the Robotaxi rollout and how it will handle poor weather.
Tesla has been contacted by the National Highway Traffic Safety Administration (NHTSA) regarding its planned rollout of a Robotaxi platform in Austin, Texas.
The agency sent a letter to Tesla Field Quality Director Eddit Gates, seeking more information on exactly how the company plans to operate the fleet in poor weather conditions. The NHTSA wants to know how Tesla’s technology and operational use cases will “assess the ability of Tesla’s system to react appropriately to reduced roadway visibility conditions.”
Additionally, the NHTSA said it would like additional information on Tesla’s development of technologies for use in ‘robotaxi’ vehicles to understand how Tesla plans to evaluate its vehicles and driving automation technologies for public roads.
Tesla has already started operating a supervised version of the Robotaxi platform for employees in both Austin and San Francisco. This limited rollout has completed thousands of rides already, but differs from the version it plans to roll out in the coming weeks in Austin, as it currently has a driver sitting in the driver’s seat.
Tesla says it has launched ride-hailing Robotaxi teaser to employees only
They are there to supervise the vehicle and ensure safety early on in the program.
The letter that was sent to Tesla on May 8 is part of a greater investigation that was opened by the NHTSA on October 17, titled “FSD Collisions in Reduced Roadway Visibility Conditions.”
The agency said the purpose of the “Preliminary Evaluation of FSD” was to assess:
- The ability of FSD’s engineering controls to detect and respond appropriately to reduced roadway visibility conditions;
- Whether any other similar FSD crashes have occurred in reduced roadway visibility conditions and, if so, the contributing circumstances for those crashes; and
- Any updates or modifications from Tesla to the FSD system that may affect the performance of FSD in reduced roadway visibility conditions. In particular, this review will assess the timing, purpose, and capabilities of any such updates, as well as Tesla’s assessment of their safety impact.
Tesla is required to respond to the NHTSA’s request by June 19.
INIM-PE24031-62887 by Joey Klender on Scribd
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Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas
The recent footage featured an apparent test car that looks very similar to a vehicle that was spotted in the Fremont Factory last month.
Tesla has been very secretive about the “more affordable models” that it intends to start producing in the first half of 2025, but the company does seem to be quite busy testing something interesting in the Giga Texas complex. This was, at least, as per recent aerial footage from a longtime Giga Texas watcher.
The recent footage featured an apparent test car that looks very similar to a vehicle that was spotted in the Fremont Factory last month.
New Giga Texas Sighting
In a post on X, longtime Giga Texas watcher and drone operator Joe Tegtmeyer noted that he recently spotted a rather unique test car in the factory complex. The vehicle was under a car cover, but it was evidently missing its body panels and roof. Interestingly enough, it seemed to be shaped like a Model Y (it even had Model Y wheels), though it looked a bit more compact than another Model Y that was parked next to it.
Interestingly enough, a rather similar test car was spotted at another Tesla plant, the Fremont Factory in California, last month. Tesla watcher Met God in Wilderness, who has been posting aerial videos of the Fremont Factory for years, shared some footage from a drone flyover in mid-April. One of the vehicles captured in the flyover was an apparent test car that was parked next to fully-built Model Y and Model S vehicles. The test car in this sighting also looked like a compact crossover, and it was also missing its roof and body panels.
Tesla’s Affordable Cars
In the Q1 2025 Update Letter, Tesla noted that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” In the Q1 earnings call, Tesla VP of Vehicle Engineering Lars Moravy stated that Tesla’s affordable cars would resemble the company’s existing vehicles, though they will be more affordable.
These comments suggested that Tesla’s affordable cars, which have been informally dubbed by the EV community as the “Model 2 or Model Q,” will look a lot like its two mass market vehicles, the Model 3 sedan and the Model Y crossover. “Models that come out in the next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moray stated.
Elon Musk
Elon Musk invited to attend investment summit in Saudi Arabia: report
Musk’s reported invitation comes on the sidelines of United States President Donald Trump’s visit to the Middle East.
A planning note reported viewed by Reuters has indicated that Tesla CEO Elon Musk has been invited to a Saudi-U.S. investment forum in Riyadh, the capital of Saudi Arabia. The event is expected to be held on Tuesday.
Musk’s reported invitation comes on the sidelines of United States President Donald Trump’s visit to the Middle East.
Musk’s Invitation
As per Reuters, the upcoming investment forum is expected to be attended by some of the most distinguished people in the investment world. These include the CEOs of high-profile companies such as Blackrock, Citigroup, IBM, Boeing, Delta Airlines, American Airlines, and United Airlines, among others, the publication noted.
Considering the other attendees of the event, Elon Musk would likely fit right thanks to his leadership of companies like Tesla, SpaceX, and xAI, as well as his close ties with the Trump administration through his work at the Department of Government Efficiency (DOGE).
Musk and Saudi Arabia
Elon Musk’s relationship with Riyadh have notably improved since the start of Trump’s second term as United States president. Highlighting this improvement was Tesla’s launch in Saudi, which was held in April. Tesla’s launch was a notable event based on videos posted of the occasion, with the company showcasing some of its most exciting products, including Optimus, the Cybertruck, and the Cybercab, its self-driving robotaxi.
Tesla’s launch in Saudi Arabia, as well as his reported invitation to the upcoming investment forum, suggests that the CEO’s feud with Yasir Al Rumayyan, head of the $925 billion Public Investment Fund, has ended. The PIF Head was among the people involved in Elon Musk’s infamous “funding secured” tweet in 2018, which resulted in hefty fines and his removal as Tesla’s Board Chair. The PIF also sold its Tesla holdings and invested in another EV company, Lucid Group Inc.
Tesla gets new information request from NHTSA on Robotaxi rollout
Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas
Elon Musk invited to attend investment summit in Saudi Arabia: report
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