Tesla CEO Elon Musk praised the South Korean market on social media platform X on June 8 local time, posting “Korea is Awesome” along with a South Korean flag emoji. He also shared a post noting that the Tesla Model Y has become the best-selling car in South Korea, emphasizing that it not only ranked first among imported vehicles but also surpassed all domestic models for the first time to top the overall sales chart.
According to data from the Korea Automobile Importers & Distributors Association (KAIDA), the Model Y sold 8,762 units in South Korea in May this year, outpacing the domestic sales champion Kia Sorento, which sold 7,836 units and ranked second in overall monthly sales. This marks the first time an imported Tesla model has outsold domestic models in a single month in South Korea, and also the first time an electric vehicle has topped the country’s auto sales chart.
Tesla’s overall brand sales have also been steadily rising. Data shows that Tesla delivered 10,866 new vehicles in South Korea in May, far exceeding BMW (6,555 units) and Mercedes-Benz (3,553 units), securing the top spot among imported car brands in South Korea for the fourth consecutive month.
Industry analysts believe that Tesla’s cost optimization through producing the Model Y in China, followed by price reductions, is a key factor driving sales growth. The Model Y currently starts at 49.99 million won (approximately $38,454) in South Korea, with further reductions after government subsidies. In comparison, the Kia Sorento hybrid starts at 38.96 million won (approximately $29,969), significantly narrowing the price gap between the two flagship models.
Some observers point out that as consumer acceptance of “Made in China” models increases, high-cost-performance electric vehicles like Tesla may continue to pressure the domestic market share of Hyundai Motor and Kia. Chinese EV maker BYD, which entered the South Korean market last year, has also achieved monthly sales exceeding 1,000 units for three consecutive months as of last month.
Professor Lee Ho-geun from the Department of Future Automotive Engineering at Daedeok University analyzed: “Tesla successfully marketed last year with its supervised ‘Full Self-Driving’ (FSD) feature, and this year it is putting pressure on Hyundai Motor and Kia through price reduction strategies.” He added, “The price competitiveness of electric vehicles will determine market demand.”
