Tesla Releases a Model 3 Version in South Korea with the Cheapest Price in the World

Tesla Model 3 in South Korea. (Photo: Tesla Korea)

JAKARTA - Tesla officially introduced a fuel-efficient version of the Model 3 in South Korea. The presence of this entry-level variant is believed to be the first step in the aggressive strategy of the American manufacturer to expand the electric vehicle market in Asia through a more competitive pricing approach.

In South Korea, the economical version of the Model 3 is priced at 41.99 million won or around Rp487 million. After receiving government subsidies, the price even dropped below Rp435 million, making it the cheapest new Tesla in the world today.

Compare with the Long Range Rear-Wheel Drive Model 3 which was previously sold for 52.99 million won or around Rp600 million. This means that there is a difference of almost Rp100 million more between the two variants.

Because it is produced at Tesla's Gigafactory Shanghai, the launch of this economical version of the Model 3 in China is expected to be imminent. CarNewsChina, Tuesday, January 27, predicts that the selling price could fall to around 170,000 yuan or around Rp. 410 million after the cost of cross-country distribution is eliminated.

However, the cheap price is paid for a number of feature cuts. The vehicle's mileage drops drastically from 583 km to 382 km, while the acceleration from 0-100 km/h slows down from 5.2 seconds to 6.2 seconds.

Consumers also only get one choice of 18-inch rims. The interior is also simplified with the use of black fabric upholstery, manual seat and steering wheel arrangements, and the loss of several features such as an 8-inch rear screen, independent climate control, ambient lighting, and a reduction in the number of speakers from nine to seven.

Even so, the frugal version of the Model 3 remains an attractive option for consumers who want to own a Tesla at a more affordable price. If this model really enters China soon, Tesla's move has the potential to spark a new price war in the Asian electric car segment.