Tesla begins sale of cheaper Model Y vehicle in South Korea

The car, which boasts a driving range of 350 kilometres and has a top speed of around 217 km per hour, is available for delivery between August and September.

Tesla began selling its Model Y rear-wheel drive car on Friday in South Korea at a price of 56.99 million won ($45,139), the automaker' s website said, making the vehicles eligible for the maximum rate of government subsidies.

Visitors check a Tesla Model 3 car next to a Model Y displayed at a showroom of the U.S. electric vehicle (EV) maker in Beijing, China. (REUTERS)

The car, which boasts a driving range of 350 kilometres (217.48 miles) and has a top speed of around 217 km per hour, is available for delivery between August and September, the electric vehicle maker said.

Local media said the Tesla Model Y cars were made in China. A tweet by Tesla Korea announcing the sale showed a video of cars being produced in its Gigafactory in Shanghai and being shipped.

With subsidies, coupled with Tesla's referral programme, the price can be reduced further to below 50 million won, the company said.

In Seoul, consumers can receive subsidies of up to 8.6 million won for EV vehicles priced below 57 million won.