Tesla has launched a new budget version of its Model 3 in the South Korean market, marking what may be the beginning of a broader Asian pricing strategy. The entry-level vehicle is priced at 41.99 million Korean won (approximately 198,000 yuan or 28,300 USD), and drops to under 180,000 yuan (25,700 USD) after government subsidies—reportedly the lowest price globally for a new Tesla.
The budget model represents a big discount compared to the previously available Long Range Rear-Wheel Drive version in South Korea, which sells for 52.99 million won (approximately 250,000 yuan or 35,700 USD). This creates a price differential of around 50,000 yuan (7,100 USD) between the standard and budget versions.
Since these vehicles are manufactured at Tesla’s Shanghai Gigafactory, a mainland China launch appears imminent. When the budget model arrives in China, CarNewsChina estimates the prices could potentially drop even further—perhaps to as low as 170,000 yuan (24,300 USD)—once logistics costs are eliminated.
Feature reductions
The budget model comes with compromises compared to the standard version. Most notably, the range has been reduced from 583 km to 382 km—a 200 km reduction. Performance has also been affected, with 0-100km/h acceleration increasing from 5.2 to 6.2 seconds. Buyers will have only one wheel option: 18-inch rims.
Interior appointments have been downgraded. The cabin features cloth upholstery available exclusively in black. The front infotainment system loses radio functionality, while the steering wheel and front seats switch from power to manual adjustment. The front seats retain heating capability but lose ventilation, and rear seat heating has been eliminated entirely.
Other reductions include:
- Removal of the rear 8-inch screen and independent climate control
- Speaker count reduced from nine to seven
- Elimination of ambient lighting and door storage compartment lights
- Exterior mirrors remain power-adjustable (unlike in North America where they’re manual) but lose anti-glare functionality
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