(Dec 28): South Korean retail investors have bought a net US$2.8 billion (RM12.41 billion) worth of Tesla Inc stock this year amid the electric-vehicle maker’s worst slump on record.
Day traders have added US$160 million in Tesla shares this month through Tuesday (Dec 27), on track for a third month of net purchases, according to data from Korea Securities Depository. They continued to buy even as the stock has tumbled 44% in December, headed for its worst-ever month.
Tesla remains the most popular overseas stock among South Korean retail traders, who sharply increased investment during the Covid-19 pandemic. Elon Musk has built a devoted fan base in the Asian nation, luring dip-buyers in its 2022 collapse on top of those who piled in, as it soared over the previous two years.
Tesa supplier LG Energy Solution Ltd has been a beneficiary as well, with South Korean mom-and-pop investors pouring a record amount of funds into the battery maker’s initial public offering in January. LG Energy shares are up 46% since its debut.
South Korea’s retail investors has also remained loyal to their favourite domestic stock, Samsung Electronics Co, buying a net US$12.3 billion so far in 2022. Shares in the world’s largest memory maker are down 28% this year amid the global tech sell-off.