In an exciting development, Tesla is preparing to launch sales of its Model Y Rear-Wheel Drive (RWD) variant in South Korea. The Ministry of Environment has granted Tesla Korea, the local unit of the Texas-based automaker, an environmental certificate for the Model Y RWD manufactured at Giga Shanghai in China. This certification is a mandatory requirement for automakers to sell their vehicles in Korea.
The certified Model Y RWD for the Korean market will be equipped with lithium iron phosphate (LFP) batteries, which will be supplied by China’s Contemporary Amperex Technology Co. (CATL). It is worth noting that Tesla’s Model Y Long Range, featuring a lithium-ion battery, is currently priced at approximately ₩78,747,000 ($81,000 CAD) in Korea. This price is 25% higher than the equivalent model available in China, as reported by Pulse News.
To bridge this pricing gap, local reports suggest that the Model Y RWD, eligible for state subsidies, will be offered at around ₩57 million ($58,600 CAD) in Korea. It is important to mention that Tesla initially offered the Model Y Standard Range when it launched Model Y sales in the country in 2021. However, the vehicle was swiftly removed from the Design Studio shortly after its introduction. At the time of its availability, the Model Y Standard Range was priced at ₩59,990,000 ($61,700 CAD).
Tesla’s decision to introduce sales of the Model Y RWD from Giga Shanghai in South Korea mirrors a similar strategy implemented for the Canadian market. Just last month, Tesla included the Model Y RWD in the Canadian Design Studio, strategically pricing it below the threshold required to qualify for the $5,000 federal rebate. This move also made the Model Y Long Range eligible for the incentive. The first shipment of cars has already arrived from China, with some vehicles joining the existing inventory, while a second shipment is en route to Canada from Shanghai.
