Tesla is at risk of losing subsidies in South Korea after the Model 3 dominates the market for electric vehicles.

On Aug. 11, according tomedia reports, Tesla electric cars in the first half of this year in South Korea sales surge, the Model 3 is dominant, but now Tesla in South Korea is also at risk of losing subsidies. Tesla electric cars are at risk of losing subsidies in South Korea after the country announced on Sunday that it intends to adjust its electric vehicle subsidy program, which could result in some models losing access to subsidy incentives.

Tesla is at risk of losing subsidies in South Korea after the Model 3 dominates the market for electric vehicles.

South Korea is expected to adjust its existing electric vehicle subsidy program in October,media said in a report, before the country’s environment minister will discuss the subsidy program with local governments, relevant experts and associations.

South Korea’s environment ministry will also communicate with automakers before making adjustments to the electric vehicle subsidy program. South Korea’s environment ministry plans to meet monday with representatives of 11 automakers, including Hyundai and Kia, two of South Korea’s most important home-grown automakers,media said in a report.

Media reported that the adjusted electric vehicle subsidy program is expected to remove high-end electric car brands such as Tesla from eligibility for subsidies.

If disqualified from subsidies, it could have a big impact on Sales of Tesla’s electric cars in South Korea.

Notably, South Korea announced its intention to adjust its electric vehicle subsidy program shortly after first-half data on electric vehicle sales and subsidies were released.

At the end of July, the Korean Automobile Manufacturers Association disclosed first-half sales of electric vehicles and subsidies for Tesla.

In the first half of the year, 22,267 electric vehicles were sold in South Korea, up 23 percent from a year earlier, according to the Korea Automobile Manufacturers Association. Tesla Electric Vehicle’s sales in South Korea jumped 1587.8 percent in the first half of the year from a year earlier, while its share of the electric passenger car market rose 43.3 percent.

Tesla also accounted for a large randal of Electric Vehicle Subsidies in South Korea in the first half of the year, with an expected 90 billion won ($75.33 million) in subsidies, or 43 per cent of the first half of the year.