Tesla is at risk of losing subsidies in Korea over widespread battery failures
Tesla is in hot water in South Korea as nearly 4,500 of its electric vehicles have reported serious battery issues, putting their eligibility for government subsidies at risk.
We’re receiving some troubling reports from South Korea today, as the Korea JoongAng Daily is reporting that a significant number of Tesla vehicles are experiencing battery failures.
The issue centers around a “BMS_a079 error,” a fault in the Battery Management System that is causing headaches for nearly 4,500 Tesla owners. This error, which has been reported in both Model 3 and Model Y vehicles, triggers a safety protocol that limits the battery’s maximum charge to 50%. This effectively cripples the vehicle’s range, posing a major inconvenience for owners who rely on their Teslas for daily driving.
The problem has been escalating for some time and affects primarily 2021 vehicles, with a total of 4,637 reported cases in 4,351 cars.
Here are the exact numbers Tesla reportedly shared with Democratic Party lawmaker Park Sang-hyuk:
| Total | One-time failure | Two-time failure | Three-time failure | Four-time failure | |
| No. of cars | 4,351 | 4,086 | 245 | 19 | 1 |
| No. of cases | 4,637 | 4,086 | 490 | 57 | 4 |
As you can see, the problem has also been recurring after battery replacements in hundreds of cases, which some blame on Tesla using refurbished battery packs rather than new ones.
For the most part, Tesla was covering the repairs under warranty. But many of these vehicles are now out of warranty, as they sometimes exceed the maximum mileage. In those cases, owners are facing a staggering repair bill of over 30 million won (approximately $22,000) to get their cars back in working order.
This has, understandably, led to a growing chorus of angry customers.
As much as 22% of 2021 Model Ys and 12% of 2021 Model 3s in Korea are affected. This led people to believe that it had nothing to do with normal wear and tear, and it should be a recall for a defect.
A civic group, the Citizens United for Consumer Sovereignty, is now demanding that Tesla Korea take responsibility for the issue. They are calling for a full-scale recall of all affected vehicles and a thorough investigation by the Ministry of Land, Infrastructure, and Transport to get to the root cause of the problem.
The situation has also caught the attention of the Korean government. The Environment Ministry has issued a stern warning to Tesla: fix the problem, or risk losing the lucrative government subsidies that have been a key driver of EV adoption in the country.
A government official who handles EV subsidy programs told the Korea JoongAng Daily:
“We have requested a clear response from Tesla Korea regarding the issue, but have yet to receive one. If the company continues to remain unresponsive, we will have no choice [but to consider suspending subsidies.] We cannot justify providing public funds for vehicles that disadvantage consumers.”
The current subsidy for EVs in South Korea can be up to 5.8 million won (approximately $3,950), which is a significant factor contributing to South Korea’s status as a key market for Tesla.
Tesla has built a strong presence in South Korea, becoming the third-largest imported car brand by sales in 2024. However, this battery issue, coupled with the potential loss of subsidies, could significantly dent their market share.
Electrek’s Take
This is a developing story, and we’ll be keeping a close eye on how Tesla responds to this pressure from both the Korean government and its own customers.
It’s not the first time that Tesla has been found to limit battery capacity and charging through a software update.
However, it’s the first time that it has been linked to a large population of vehicles of a specific timeframe like that.
I would love to know the root cause of this problem, as I don’t understand why it primarily affects South Korean owners.
My understanding is that most of Tesla’s vehicles sold in Korea are made at Gigafactory Shanghai in China, and that’s Tesla’s main export hub. Most of Tesla’s vehicles outside of the US are made in China. We should start seeing similar issues in other markets unless there’s a specific contributing factor in Korea.
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Kia is about to go on the offensive. The automaker plans to nearly triple electric vehicle production in Europe within the next two years as it introduces the new EV2 and EV4.
Kia doubles down on EV2 and EV4 production plans
With the EV2 and EV4 joining the lineup, Kia will offer an electric vehicle for nearly everyone. The EV2 is Kia’s smallest, most affordable electric car, set to sit below the EV3.
Despite its compact size, Kia said the EV2 will “redefine urban electric mobility” with a flexible interior, its latest connectivity tech, and more.
According to Kia’s CEO, Ho Sung Song, the company plans to build about 100,000 EV2s at its Zilina plant in Slovakia.
“The average annual production of the upcoming EV2 is expected to reach around 100,000 units at the Zilina plant in Slovakia in 2027,” Song told Automotive News Europe earlier this month.
Kia is also scaling up output of its first electric hatchback, the EV4. By 2027, Kia plans to build over 80,000 EV4s at the Zilina plant. If you add in the EV4 Fastback or sedan models built in Korea, “the EV4’s combined global production is expected to reach approximately 100,000 units,” Kia’s CEO said.
Song explained that Kia aims to produce 100,000 EV2 and EV4 models globally each year, as this volume will be high enough to make them profitable.
The new production target is considerably higher than what Kia Europe CEO Marc Hedrich told Automotive News Europe in August.
Hedrich said that combined EV2 and EV4 production could account for 10% and 20% of the output at the Zilina plant in 2026, adding that a production goal of 20,000 to 30,000 EV4s “would certainly make sense” next year.
Officials from Kia Europe explained that production plans shifted after the EV4 received better-than-expected feedback following its launch in August.
Kia began EV4 production on August 20, marking a milestone as its first EV built in Europe. Kia is investing €108 million ($125 million) in the Zilina plant to produce the EV2 and EV4. The EV2 will join in 2026.
The facility has the capacity to build 320,000 vehicles, but Kia said output could be expanded to 350,000 with overtime.
Kia has yet to reveal final specs, but given the EV3 is about 4,300 mm (169.3″) in length, the EV2 is expected to be slightly smaller at around 4,000 mm (157″). That’s about the size of Hyundai’s entry-level EV, the Inster, at 3,825 mm (150″) in length.
Like the EV9 and recently launched EV5, Kia’s compact electric car features a more upright, crossover-SUV-like design.
Although Kia’s overall sales are down 3% in Europe through August, EV sales are up 56% to 71,179. The EV3 is driving growth as Kia’s second-best-selling vehicle behind the Sportage and as the seventh best-selling EV in Europe. Through the first eight months of 2025, Kia sold 45,269 EV3s in the region.
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Honda’s electric SUV was the third most popular EV in the US in August, behind the Tesla Model Y and Model 3. Offering over $12,000 in average incentives, the Honda Prologue scored big as buyers rushed to claim the federal EV tax credit.
Honda Prologue registrations surge with huge incentives
As the $7,500 credit expired at the end of September, automakers were offering pretty notable discounts, many in the five digits with combined incentives.
The Honda Prologue has been one of the most discounted EVs over the past few months. Last month, buyers could score up to over $20,000 in combined savings, including a $7,500 credit, $9,500 in financing bonuses, trade-in offers, and 0% interest for six years.
According to the latest registration data from S&P Global Mobility (via Automotive News), the incentives helped propel the Honda Prologue to become the third most popular EV in August.
A total of 138,457 EVs were registered in the US in August, up 24% from a year ago. Honda Prologue registrations surged 81% to 9,005 vehicles, the data showed.
Since some automakers don’t report monthly or US sales numbers, the S&P Global Mobility data offers a snapshot of sales performance.
The Prologue was yet again one of the most discounted models, with incentives of $12,704 in August, according to Motor Intelligence. Last August, Prologue incentives were just $5,813. Honda’s gas-powered CR-V had just $2,016 in incentives in August.
Although the $7,500 credit expired on September 30, Honda is still offering generous incentives for Prologue buyers and lessees.
The 2025 Honda Prologue is available with up to $16,550 in lease cash in most states. Alternatively, Honda is offering 0% APR financing for up to 60 months.
2025 Honda Prologue trim |
Starting Price* | EPA Range (miles) |
| EX (FWD) | $47,400 | 308 |
| EX (AWD) | $50,400 | 294 |
| Touring (FWD) | $51.700 | 308 |
| Touring (AWD) | $54,700 | 294 |
| Elite (AWD) | $57,900 | 283 |
Although the Acura ZDX will not return for a 2026 model year, Honda is planning to launch the 2026 Prologue. We have yet to learn prices, but we could see it priced slightly lower due to the loss of the $7,500 EV credit.
Hyundai announced earlier this month it’s reducing 2026 IONIQ 5 prices by up to nearly $10,000 on some trims. The 2026 Hyundai IONIQ 5 now starts at under $35,000. Will Honda match it?
Want to check out the Prologue for yourself? You can use our link to find available Honda Prologue models in your area (trusted affiliate link).
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XCharge North America (NA) has opened Oregon’s first solar + storage DC fast charging station at Arrowhead Travel Plaza in Pendleton, part of the Wildhorse Resort & Casino complex owned by the Confederated Tribes of the Umatilla Indian Reservation.
NetZero Energy helped bring the project to life, handling system design and project management. The solar canopy provides renewable power to the chargers, while the integrated batteries make the site more resilient and capable of off-grid operation during outages.
The new station integrates four dual-dispenser 215kWh GridLink chargers with 40kW of solar that can output up to 194kW per unit, allowing drivers to charge quickly with CCS1 or NACS plugs while reducing strain on the grid. The site’s location on Interstate 84 is key because Arrowhead serves more than 1.7 million vehicles a year. Many drive the steep, rough weather-prone Cabbage Hill grade, where a full charge is essential for safety.
“We partnered with XCharge NA because they provide a grid-friendly charging solution with battery storage that seamlessly integrates with a custom solar canopy – a perfect fit for our climate,” said Tom Fine, general manager of Arrowhead Travel Plaza.
Each GridLink charger includes bidirectional capability, meaning it can send power back to the grid or function off-grid in the event of an emergency. It also has a built-in safety system that monitors battery packs with multiple sensors and fire suppression technology.
With this project, XCharge North America now operates in 18 states. Cofounder and president Aatish Patel called Oregon’s first solar-supplemented DC fast-charging site a milestone: “Our Arrowhead Travel Plaza installation goes beyond simply delivering ultra-fast charging – it’s a powerful demonstration of how integrating our GridLink technology with solar power can offset grid demand, enhance a charging site’s resilience and flexibility, and even bolster the region’s energy architecture.”
Read more: XCharge NA is now leasing DC fast chargers to small businesses
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