American electric vehicle manufacturer Tesla has achieved a remarkable milestone in South Korea, surpassing 200,000 cumulative sales and capturing a 30% market share within ten years of its entry into the market. Tesla Korea, which began sales in 2017, has experienced explosive growth, ranking in the top 0.03% of domestic companies by revenue (3 trillion won). However, its contributions in terms of investment, employment, and donations have been declining, raising concerns.
According to the Korea Automobile Importers and Distributors Association, Tesla registered 56,139 new vehicles in the first half of this year, leading the import car market with a 30.51% share. This figure represents a 192.2% increase compared to the same period last year, and the company is expected to surpass 100,000 sales by the end of the year. For the first time this year, Tesla has also outperformed Hyundai in the domestic electric vehicle market. Kia leads electric vehicle sales with 72,078 units, followed by Tesla and Hyundai with 39,574 units.
Tesla's rapid growth is attributed to a strong fan base among South Korean consumers. Since establishing its local subsidiary on November 13, 2015, and opening its first store in Starfield Hanam in March 2017, Tesla has expanded to eight official stores and 16 service centers. Although Tesla is not a member of the Korea Automobile Importers and Distributors Association, the association has decided to include Tesla's sales figures in its statistics starting in 2024, anticipating annual growth of over 100% with projections of 29,750 units in 2024 and 59,916 units in 2025.
Despite its growing presence, Tesla's contributions to the development of the domestic electric vehicle market have been minimal. The company's investments in employment, investment, and donations in South Korea declined last year, even as it received over 1 trillion won in government subsidies over the past decade. Additionally, there are concerns about the environmental impact of Tesla's use of lithium iron phosphate (LFP) batteries, which are difficult to recycle. These batteries, sourced from China, are criticized for their low recycling value and are often labeled as hazardous waste.
Industry insiders point out that while Tesla sells high-efficiency nickel-cobalt-manganese (NCM) battery vehicles in the U.S. and premium segments, it primarily offers cheaper LFP vehicles manufactured in its Shanghai plant in South Korea. They warn that the costs and environmental consequences of disposing of these batteries when Tesla vehicles reach the end of their lifespan will ultimately fall on South Korean society.
* This article has been translated by AI.
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