Tesla International Expansion into Korea

[bonaire]

Model 3 will qualify for $15k in ev incentives in Korea. Just saw an article about it.

Is this incentive going to last forever? Is there a term? Imagine if "a million" EVs showed up on the shores one day. Would the Government have any issue handling 1 million $15,000 instant rebates? I think they did the $15k shortly after Kia said their run rate of the Soul EV would be about 5000/year to start. If every importer rolls up with a big batch of cars, could they pull this rebate on a whim in a way not unlike Denmark removed incentives Dec of 2015? Does Korea import Chinese goods, including autos? If so, there are a variety of Chinese firms ramping up their EV offerings there and if cheap-enough, the $15k rebate might even cover half or more of the price (unless they have import tariffs or VAT).

Conversely, the US government does have money to burn (see desert operations in the ME). They could do a $15k rebate incentive in the USA as well. Some think that Hillary might be able to get the $10k rebate incentive going that Obama floated as an idea. I would rather see it spread out further, perhaps a $5k rebate versus tax credit. Get more people buying all levels of EVs.

 

[bh1783]

Is this incentive going to last forever? Is there a term? Imagine if "a million" EVs showed up on the shores one day. Would the Government have any issue handling 1 million $15,000 instant rebates? I think they did the $15k shortly after Kia said their run rate of the Soul EV would be about 5000/year to start. If every importer rolls up with a big batch of cars, could they pull this rebate on a whim in a way not unlike Denmark removed incentives Dec of 2015? Does Korea import Chinese goods, including autos? If so, there are a variety of Chinese firms ramping up their EV offerings there and if cheap-enough, the $15k rebate might even cover half or more of the price (unless they have import tariffs or VAT).

Conversely, the US government does have money to burn (see desert operations in the ME). They could do a $15k rebate incentive in the USA as well. Some think that Hillary might be able to get the $10k rebate incentive going that Obama floated as an idea. I would rather see it spread out further, perhaps a $5k rebate versus tax credit. Get more people buying all levels of EVs.

Probably not a problem. The government wants to go all EV The country is basically an island with no oil. Even though Korea is an oil exporter(it has some of the largest refineries in the world) the pollution is so bad that the governments wants to go all EV.

There is a huge gas tax that would easily finance the EV rebates. Gas is $7-8/gallon.
No one buys the current EVs now because the car manufacturers just jack up the price to offset the rebate. BMW sells the i3 here for 70k before rebates and the Kia and Hyundai EVs sell for 45-50k for 100 miles of range.

No Chinese cars in Korea.

Rebates are bad because the car manufacturer takes the money instead of the consumer. The rebates don't work in Korea because the car manufacturer just raises the price by 15k and captures the whole rebate. We will see how Tesla prices their care here.

The US doesn't have money to burn. They have 20 trillion in debt and an underfunded infrastructure. The US is in the Middle East for oil, if gas went to $7/gallon the US economy would collapse.

 

[bh1783]

store opening Nov/Dec 2016 in Korea
Life Delicious with Pat2Bach~! : ???̹? ???α?
남자들의 놀이터, 자동차 위주로 둘러본 스타필드 하남 후기

 

[bh1783]

Tesla rents second space to go Gangnam style
Second tesla showroom in Cheongdam. Article is incorrect rent is $440k per year not for the entire contract for that neighborhood. 40k per month in rent for 3 floors is pretty cheap for that area. Best area in the city for a Tesla store but horrible location and an even worse building. Store is in front of a 14 lane road but is right next to a highway onramp so there is always traffic jams in front of the store. They won't be able to take test drives in the evening very well from that location. I also don't know why they are putting their store in a building with a room salon on the top floors. It would have only taken 5 min to figure out their flagship store is sharing space with a high end prostitution bar. Oh well. . . at least it's a better location than Hanam starfield.

 

[JRP3]

Store is in front of a 14 lane road but is right next to a highway onramp so there is always traffic jams in front of the store...It would have only taken 5 min to figure out their flagship store is sharing space with a high end prostitution bar.

People stuck in their cars right in front of Tesla, and a constant stream of wealthy potential customers. Sounds good to me.

 

[bh1783]

People stuck in their cars right in front of Tesla, and a constant stream of wealthy potential customers. Sounds good to me.

I dunno, commercial real estate in Seoul is pretty expensive. Their security deposit is at least $1 million. You would think they would have scouted the location a little bit better. Regardless that location should do pretty well. The gas station next door sells gas for $8-10 a gallon.

 

[MikeC]

Tesla finally launches in South Korea with two stores

 

[Drone Flyer]

I'd like to see a bunch of Superchargers in North Korea!
(Sarcasm).
However, putting that aside, I wonder if Tesla will someday put them there! Hmm!

 

[Gerasimental]

Can they get around the restriction on the incentives by offering a software limited 20kWh version with an optional later upgrade to 70/90/ kWh for $1000?

 

[Dave hennerman]

Does anyone have phone/email number for the tesla store in Seoul.

Was thinking about selling my new model 3 there as long as I could cover my shipping and travel expenses.

 

[ggr]

Does anyone have phone/email number for the tesla store in Seoul.

Was thinking about selling my new model 3 there as long as I could cover my shipping and travel expenses.

See Tesla Stores in South Korea | Tesla (which I'm sure you could have looked up for yourself). Speaking as Moderator: I don't want to see followups here in the Finance forum.

 

[RobStark]

Pl... Model........................H1 2018
1....Hyundai Ioniq Electric..4,304
2....Chevrolet Bolt .............3,122
3....Hyundai Kona EV.......1,380
4....Kia Soul EV..................990
5....Renault Samsung Twizy..984
Others................................1,716

TOTAL................................12,496
EV Sales: South Korea H1 2018 (Draft)

Things are getting interesting in S Korea but it seems Tesla is still in the "other" category.

South Korea is the 4th-5th largest luxury car market in the world.

 

[schonelucht]

That clears up where the Bolts are going, because despite huge demand they are barely selling in Europe.

 

[Drone Flyer]

Pl... Model........................H1 2018
1....Hyundai Ioniq Electric..4,304
2....Chevrolet Bolt .............3,122
3....Hyundai Kona EV.......1,380
4....Kia Soul EV..................990
5....Renault Samsung Twizy..984
Others................................1,716

TOTAL................................12,496
EV Sales: South Korea H1 2018 (Draft)

Things are getting interesting in S Korea but it seems Tesla is still in the "other" category.

South Korea is the 4th-5th largest luxury car market in the world.

What about North Korea? Can't wait to see Tesla there!

 

[RobStark]

GMC In South Korea? The Sierra 1500 Will Spearhead The Brand’s Launch Into Asia: News

The 2022 GMC Sierra 1500 will launch in South Korea next year, as part of the brand's push into new markets.

tfltruck.com

GM launching GMC full size truck in S Korea that has gasoline $6+/gallon.

If the Sierra is even moderately successful it tells me cybertruck can be very successful.

 

[RobStark]

Tesla rules Korea's EV market in 1st half

Tesla rules Koreaâs electric vehicle (EV) market, accounting for 43 percent of all passenger EVs sold in the first half of this year.

koreajoongangdaily.joins.com

BTW South Korea total auto market is about 1.8M units.