Tesla sold just 1 car in South Korea last month
In January, Tesla faced a major slump in South Korea, selling just one car, a Model Y, in the country. This was the EV maker's worst sales figure in South Korea since 2022. The drop in sales has been linked to worries about inflation, battery fires, and a shortage of fast EV chargers. For reference, South Korea saw a 3.6% inflation rate in December 2023, making consumers more cautious with their spending.
Battery fire concerns impacted EV sales in South Korea
A survey by the South Korean Transportation Safety Authority in November showed that nearly 50% of EV owners considered 'battery catching fire' as their primary safety concern. This is likely due to an explosion which took place in an apartment parking lot in 2022. This fear contributed to an 80% decrease in new EV registrations month-over-month. The International Energy Agency reported that only 10% of EV chargers in South Korea are fast chargers, further adding to the decline in sales.
Lack of government subsidies was another reason
While Tesla did not immediately comment on the situation, a spokesperson told Bloomberg that sales in South Korea typically slow down in January. This is primarily due to people waiting for government subsidies to be announced around this time of the year. The news comes as Tesla's market capitalization continues to fall. The EV maker's popularity and performance have been negatively impacted by the recent recalls as well.
