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Tesla aims for South Korea to revise eco-friendly incentive program

Credit: everything_tesla_pr0/Instagram

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Tesla is looking for the South Korean government to revise an eco-friendly vehicle sales program that gives automakers tradeable incentives for selling low-emissions vehicles. The electric automaker says that the agreement is discriminatory and violates the Free Trade Agreement that sits between South Korea and the United States.

The “Low Emission Vehicle Supply Target System” is set to be implemented this year, and automakers that sold 4,500 cars in South Korea in 2009 qualify for the program. The problem is, even though Tesla is the world’s leader in selling eco-friendly electric cars, the company doesn’t technically qualify for the incentive-giving program. Tesla only sold 937 cars in South Korea in 2009, not meeting the required 4,500 vehicle threshold.

Business Korea reported that being included in the program could lead to billions of Korean Won being awarded to the automakers who meet the target requirements. Each credit is tradable, sources told the Korean news outlet, which could add up to $30 million to Tesla’s margins due to current sales volumes in the country. However, because of not meeting the sales requirement in 2009, Tesla isn’t expected to see any of that money currently.

The South Korean Government stated that the plan is not discriminatory and is related to previous talks that the country had with the U.S. government. Additionally, government spokespeople said that the target system lines up with the U.S.-South Korea Free Trade Agreement.

Other United States-based automakers who do not import many cars to the country asked for revisions, and 4,500 units was the number that was landed on. “The U.S. government requested exceptions for smaller sellers such as Cadillac, and its demarcation was 4,500 units,” the government said.

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Tesla didn’t introduce the Model S until 2012, three years after the 2009 guidelines South Korea is using. Furthermore, Tesla didn’t mass produce a car until 2017, when the Model 3 was introduced to consumers. Since then, it has become the best-selling electric vehicle in the world.

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

It is currently unknown if South Korea will introduce any changes that will allow Tesla to qualify for the rewards. Fears of a trade dispute between South Korea and the United States seem to be the holdup, according to local sources, as trade experts believe it could be difficult to revise the plan this late without negative consequences.

Naver reported:

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“The reason for setting the exception standard was to protect domestic companies, but it could be argued that it was used to give disadvantages. There are also voices of concern that the battle with Tesla, the largest electric vehicle company in the United States, could lead to a trade dispute between Korea and the United States.”

H/t: DriveTeslaCanada

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla could face emissions credit tax in Washington

Tesla could be subject to a tax on its emissions credit sales in Washington, just ahead of the beginning of the state’s phase-out of gas vehicles.

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Credit: Tesla

Tesla could face a new tax on the emissions credits it sells to other automakers, as introduced this month by legislators in the state of Washington.

As detailed in an op-ed from the Wall Street Journal on Monday, Democrats in Olympia have filed two companion bills proposing a 10 percent tax on the electric vehicle (EV) emissions credits Tesla sells, valued at roughly $1.79 billion globally last year. The emission credits market was created out of regulations requiring automakers to start phasing out gas vehicles, allowing Tesla, which only makes EVs, to sell the credits to gas automakers which aren’t able to meet the upcoming phase-out goals.

“The creation of these tradeable and bankable credits creates the opportunity for a financial windfall accruing to firms that are not burdened by the legacy production of internal combustion engine vehicle,” legislators wrote in the proposal. “It is the intent of the legislature to address this unintended outcome by taxing the windfall profits.”

Olympia Republicans went on to file a counter to the bill, which would effectively prohibit such a tax as well as “any other tax that applies to only one individual, business, or entity.”

READ MORE ON TESLA EMISSIONS CREDITS: Tesla to help automakers comply with the EU’s 2025 CO2 emission rules

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Washington joined California in 2020 in setting regulations to phase out gas vehicles by 2035, requiring a maximum of 20 percent plugin hybrid vehicles sold in the year along with making 80 percent of the year’s sales fully electric. The initial phase-out regulations kick off in 2026, requiring automakers to make 35 percent of their new vehicles fully electric or plugin hybrids, before that level increases to 51 percent in 2028, and 68 percent in 2030.

Tesla’s vehicle sales in Washington made up just 10 percent of those sold in the state last year, while the company has about 54 percent of all emissions credits in the state, according to the Washington Policy Center.

The Wall Street Journal editorial calls the new proposals “abusive lawmaking,” saying that targeting a single company would be strongly opposed by progressives if it were suggested by the Trump administration. Additionally, the op-ed highlights that Tesla and CEO Elon Musk set the price for the emissions credits, meaning that they could simply charge automakers more for them to make up for money lost on the tax.

U.S. Supreme Court to hear challenge on California emission rule waiver

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Tesla’s Hollywood Diner is finally getting close to opening

Tesla’s construction of the Southern California diner, drive-in, and Supercharger hasn’t exactly been quick, but it appears to be getting close to opening.

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Credit: HowardModels | Twitter

Tesla looks to be getting closer to opening its highly anticipated diner, drive-in movie theater, and Supercharger location in Southern California, after the company began construction on the project in the latter part of 2023.

On Sunday, X user BLKMDL3 stopped by the Hollywood Tesla Diner location and shared photos of the site, noting that Superchargers are now lit up, parking lots are fully paved, and construction generally appears to be nearing completion. The news comes after Tesla has been building out the site for around 18 months, which many have pointed out is longer than some of the company’s latest production facilities have taken.

Tesla has yet to disclose when it plans to open the Supercharger location, though it appears to be getting closer than ever, at least as far as construction is concerned. The company also included some code related to integration with the diner in its latest version of the Tesla mobile app in January, along with posting its first job listings for the site in August.

You can see the latest progress on the Tesla Diner below, courtesy of X user BLKMDL3.

Credit: BLKMDL3 | X

Credit: BLKMDL3 | X

Credit: BLKMDL3 | X

READ MORE ON TESLA SUPERCHARGERS: Tesla is building a new UFO-inspired Supercharger in the heart of Alien country

The user also notes that the adjacent parking lot is being built out to include additional Supercharger stalls, with the actual lots for the diner including around 28 to 32 stalls total, consistent with permits for the project. Next door, the user says the company is building roughly an additional 50 or so stalls, though these aren’t likely to be open when the diner initially opens.

The site is located at 7001 West Santa Monica Boulevard, and according to Elon Musk’s original concepts for the Supercharger discussed on what was then Twitter in 2018, the unique charger is set to include a 1950s-style diner with rock and roll and waiters on roller skates, in addition to drive-in theater screens playing scenes from the best movies in history.

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Tesla gained a series of construction permits for the project throughout 2023, before officially beginning construction in September 2023. You can see photos from the site below, taken just weeks after groundbreaking, as well as in January and April of last year.

Tesla’s LA Diner and Supercharger in November 2023

Credit: Ed Howard | X

Tesla’s LA Diner and Supercharger in January 2024

Credit: Fox 11 Los Angeles

Credit: ShorealoneFilms | X

Tesla’s LA Diner and Supercharger in April 2024

Credit: 247Tesla | YouTube

Credit: 247Tesla | YouTube

Tesla exec highlights advantages of prefabricated Superchargers

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Tesla building apparent Cybercab castings ahead of launch

Tesla has been producing what look like some Cybercab castings at Giga Texas, as spotted this week ahead of the vehicle’s upcoming launch.

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Tesla’s Gigafactory in Texas is building what appear to be castings for the upcoming Cybercab, ahead of the vehicle’s launch and the highly anticipated debut of Unsupervised Full Self-Driving (FSD).

On Monday, Tesla Giga Texas site observer Joe Tegtmeyer shared photos on X of some unique castings out beside the factory. Notably, Tegtmeyer points out that the castings are quite different from those of the Model Y and Cybertruck, which are currently the only two vehicles being produced at the Austin, Texas plant—at least publicly.

Some viewers noted that the castings appear to have a similar shape to the Cybercab, along with being one single casting, compared to the two-piece Giga casts the factory produces for the Model Y and Cybertruck. The shape appears to be consistent with Tesla’s unboxed production process, which is expected to build single-piece castings and will be used for the upcoming Cybercab.

You can see Tegtmeyer’s photos of the castings below, in comparison with the Cybercab body and castings for the Model Y and Cybertruck.

Giga Texas castings April 21, 2025, compared to Cybercab

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Credit: Joe Tegtmeyer | X

Credit: Joe Tegtmeyer | X

Giga Texas Model Y rear casting

Credit: Joe Tegtmeyer | X

Giga Texas Cybertruck castings

Credit: Joe Tegtmeyer | X

READ MORE ON TESLA’S GIGA TEXAS: Tesla Cybercab no longer using chase vehicles in Giga Texas

In March, Tesla Vice President of Vehicle Engineering Lars Moravy confirmed in an interview with manufacturing expert Sandy Munro that Cybercab production would be starting prototype builds this summer, while the automaker is aiming to ramp for volume production in 2026.

While it isn’t summer yet, executives also confirmed in January that Cybercab production lines were already being prepared at Giga Texas, so it’s not unlikely that these castings are some of the upcoming vehicle’s first prototype builds.

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The unboxed production process is also expected to revolutionize the automotive manufacturing industry, with CEO Elon Musk emphasizing how different the production line looks compared to its past vehicles during the Q1 2025 All-Hands meeting. Instead, Musk says the production line appears more like a high-speed consumer electronics line, and it’s expected to push Cybercab builds out in less than five seconds.

In a post on X earlier this month, Musk also reiterated that the Cybercab production line and the factory in general are essentially the products on their own, rather than just the cars themselves.

“The Tesla factory, especially our next gen Cybercab line, is the product,” Musk said. “That, autonomy and Optimus, are what matter.”

Tesla is also aiming to launch its first commercial robotaxi services around Austin, Texas this summer, along with launching its first iterations of Full Self-Driving (FSD) Unsupervised. The company is also holding its Q1 earnings call on Tuesday, during which executives are expected to address questions about the Cybercab and the upcoming commercial robotaxi service.

Tesla’s Giga Texas vehicles now drive themselves to outbound lot

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