Tesla boycott causing a stir... Korean investors betting over 1 trillion won [Stock+]

Despite 33% stock price drop in a month

Tesla ranks #1 in weekly net purchases by Korean overseas stock investors

"Simple low-price buying should be approached with caution"

Despite Tesla's poor stock performance, Korean individual investors in overseas stocks (known as 'seo-hak-gae-mi') continue to show strong interest in the electric vehicle company.

According to the Korea Securities Depository's Securities Information Portal (SEIBro) on the 18th, Tesla was the top net purchase by Korean overseas investors over the past month until the previous day. The purchase amount reached $1.07195 billion (approximately 1.5490 trillion won). The second most purchased stock was 'Direxion Daily Tesla Bull 2X Shares,' which tracks Tesla's daily price movements at double the rate, with net purchases of $738.64 million (approximately 1.0673 trillion won).

Tesla's stock has performed poorly this year due to concerns about tariff policies, economic recession fears, and projections of slowing sales. In particular, the stock price has fallen by 33% over the past month, showing the worst performance among the Magnificent Seven (M7) leading U.S. tech stocks.

Continued market pessimism has also contributed to the poor stock performance. Japanese securities firm Mizuho Securities significantly lowered Tesla's target price from $515 to $430, citing poor sales performance.

However, Tesla remains a 'buy and accumulate' stock in Korea. According to the Securities Information Portal, Korean overseas investors have maintained a net buying position for eight consecutive weeks, from the week of January 20-24 to last week.

Last week (March 10-14), they recorded their largest net purchases of the year. During this period, Korean investors' net purchase settlements reached $478.67 million (approximately 690.1 billion won). The second most purchased stock was also Direxion Daily Tesla Bull 2X Shares ($249.51 million or 359.7 billion won).

This is interpreted as buying pressure from investors looking to purchase Tesla at low prices around the $250 mark. However, securities experts advise caution about approaching this simply as a low-price buying opportunity, given that 'anti-Musk' protests continue to spread globally.

A U.S. stock analyst at a Korean securities firm noted, "Recently, Tesla has failed to move in tandem with the U.S. market even during rebounds. The large correction in Tesla is also related to the credibility issues of CEO Elon Musk." As Musk, a close associate of U.S. President Donald Trump, shows aggressive behavior such as planning to fire numerous civil servants as head of the Department of Government Efficiency (DOGE), 'Tesla boycott movements' are spreading overseas in protest.

The analyst advised, "I recommend a conservative approach unless something emerges to dramatically reverse the current situation," adding, "Simply buying because it's cheap should be approached with caution."

It's noteworthy that Korean overseas investors are beginning to diversify their investment countries. Previously, the top 50 net purchase stocks by Korean investors were primarily U.S. stocks, with Chinese stocks completely absent until the end of last year.

However, last week (March 10-14), six Chinese stocks listed on the Hong Kong Stock Exchange made it into the top 50. This reflects the clear rebound in Chinese markets this year. Among Chinese stocks, Xiaomi led with net purchases of $21.41 million (approximately 30.9 billion won), followed by Alibaba Group with $9.73 million (approximately 14.0 billion won), and BYD with $9.70 million (approximately 13.9 billion won).

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com