Featured image: Stockprice
Tesla (NASDAQ: TSLA) shares are becoming increasingly valuable—and for a number of fundamental reasons. Eager to hold a stake in the company, South Korean retail investors have now become some of the largest shareholders in Tesla Inc.
The total amount of Korean individual investor holdings in Tesla reached $3.6 billion as of August 28. That's equal to a stake of 0.89%, which would rank the group at No.13 on Tesla's list of largest shareholders, according to Bloomberg data and calculations. In South Korea, Tesla has become the top choice for retail investors.
South Korean investors believe not only in the brand but also in the company's electric vehicles, which are spiking in popularity in its local market. In 2020, Tesla Model 3 topped the sales rating for electric cars (EV) in South Korea. Tesla was ahead of Hyundai and Kia in the first seven months of this year, which is a particularly notable achievement, given that Tesla's factories in the U.S. were shut down for more than a month due to the coronavirus pandemic. Tesla is also partnering with local LG Chem, which adds to brand loyalty.
Tesla Model 3 is Best Selling EV of 2020 In South Korea (Jan-July)https://t.co/1BFsC8kHUD— Tesmanian.com (@Tesmanian_com) August 12, 2020
Record low-interest rates in the country are prompting Korean individual retail investors to seek alpha not only in the national stock market but also in overseas equity markets. Total deposits at local brokerages for retail stock trading have climbed to a record of more than $40 billion this year, according to the Korea Financial Investment Association. Seven out of the top 10 overseas stocks favored by Korean retail investors are U.S. stocks, with Apple Inc., Amazon.com Inc., and Microsoft Corp. the most held after Tesla.Follow @EvaFoxU
Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Eva Fox holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
We appreciate your readership! Please share your thoughts in the comment section below.