Tesla’s stocks and cars are both in high demand around the world right now, and it doesn’t seem like that’s going to change anytime soon.
As of Friday, South Korean retail investors are now some of the largest Tesla traders in the market, as Korean individual share holdings reached $3.6 billion USD, according to Bloomberg and data compiled by Korea Securities Depository. These holdings represent 0.89% of the total stock, or the 13th-largest share in Tesla’s long list of shareholders.
The news may not come as much of a surprise with Tesla’s stocks reaching all-time highs multiple times over the course of the past month, but it is yet another sign that Tesla is dominating the Asian electric vehicle (EV) market.
Korean’s now love the Tesla Model 3 and then love the TSLA stock! Rinse, Repeat! https://t.co/5UczhhWdF0
— Pete Clay (@Pete_Clay) August 31, 2020
South Korea is also a particularly important market to Tesla and other EV makers, given it’s the home of car battery manufacturers LG Chem Ltd., among others.
While the large shareholding of the Korean market is a benefit to Tesla now, it also could hurt them in the end.
You Seung-Min, chief strategist at Samsung Securities Co. told said “It is true Korean traders tend to seek a short-term profit,” He continued, saying, “So if volatility rises in markets, they could flee from Tesla’s stock en masse.”
Whatever the South Korean market’s move towards Tesla’s stocks means in the end, it is, at the very least, a signal of trust for the time being.
Zach is a writer, musician, and EV enthusiast, currently residing in Santa Rosa, Ca. Loves his wife, his cat Banks, and a good cup of coffee.