According to a new report, Tesla only sold one car in South Korea in January. January 2024 marked Tesla’s worst month of business in South Korea since July 2022, according to data from Carisyou research group and the South Korean Ministry of Trade, as reported by Bloomberg.
The only car sold in January was the Tesla Model Y, which was once the best-selling imported car in South Korea in September last year. However, total electric vehicle sales in South Korea in general declined in January. According to Bloomberg, the number of new electric vehicle registrations in the country dropped 80% compared to the previous month.
One reason for concern among buyers is that Teslas in South Korea are made in a factory in China, rather than the US or Germany. According to Lee Hang-Koo, head of the Jeonbuk Automobile Technology Institute, most people who want to experience an electric car already own one, while the majority of ordinary users are still not ready for this type of vehicle.
“Most Koreans who want to buy a Tesla car already bought one. Recently, some people don’t like Tesla after finding out that some products are made in China,” Lee commented.
Korean consumers are concerned about battery fires following an electric car battery explosion in a parking lot in 2022. A survey conducted in November by the South Korea Traffic Safety Agency found that about half of electric vehicle owners said fire is their biggest safety concern.
In January 2024, Tesla only sold 1 Model Y
In addition, South Korea also lacks fast charging stations for electric vehicles. According to the International Energy Agency, about 90% of public charging stations are slow charging stations.
The sales of electric vehicles in South Korea are also affected by strong seasonal changes in demand. According to Lee, many people avoid buying cars in January because they want to wait for government subsidy announcements.
Tesla did not immediately respond to a request for comment, but a company spokesperson told Bloomberg that sales in South Korea are typically slow in January as consumers wait for government subsidies to be announced.
This news adds to the difficulties for Tesla as it enters 2024. After two different recalls and a temporary production halt at a factory in Germany, Tesla’s stock has dropped 25% in just the first few weeks of the year. Tesla is the worst-performing stock in the S&P 500 as of now, with the company’s market value dropping from $754 billion on January 5 to $589 billion. The decline in market capitalization value also threatens Elon Musk’s position as the world’s richest person.
