South Korean investors have withdrawn approximately $657 million from %Tesla (NASDAQ: $TSLA)) stock in 2024, reflecting growing caution toward the electric vehicle giant amid shifting global market dynamics. The exodus marks one of the largest foreign sell-offs of Tesla shares this year, highlighting concerns about slowing EV demand, intensifying competition, and the company’s volatile valuation.
Analysts suggest that Korean retail investors – once among Tesla’s most enthusiastic backers – are increasingly diversifying their portfolios away from high-growth U.S. tech stocks. Many cite fears over rising interest rates, weakening consumer demand, and the uncertain trajectory of Tesla’s earnings as reasons for scaling back exposure. This sentiment aligns with broader trends across Asia, where investors have grown more selective about mega-cap tech holdings that previously dominated their portfolios.
Tesla, long celebrated as a market favorite in South Korea, saw massive inflows during the height of the %EV boom. Korean investors were among the most vocal supporters of Elon Musk’s company, often trading Tesla heavily on local brokerage platforms. However, the recent $657 million sell-off suggests a shift from speculative enthusiasm toward risk management and capital preservation.
The move comes as Tesla faces a tougher operating environment. Price cuts to maintain market share have squeezed margins, while competition from Chinese automakers such as BYD continues to intensify. Additionally, questions about Tesla’s progress in developing its autonomous driving technology and future product pipeline add to investor uncertainty.
Despite the sell-off, Tesla remains one of the most widely held foreign stocks among South Korean investors, reflecting continued long-term interest. Market watchers caution that while short-term sentiment has turned defensive, renewed optimism could return if Tesla delivers stronger-than-expected results or unveils new growth drivers.
