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Tesla (NASDAQ: TSLA) shares are becoming increasingly valuable 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. South Korean retail investment in the company has skyrocketed nearly 32% this year alone, topping the $10 billion mark.
As of January 22, local individual investors held $10.33 billion in Tesla shares, up 31.9% from the end of last year, according to the Korea Securities Depository. It also represents a 73x growth from the end of 2019, and is also the most-bought stock of South Korean retail investors among all foreign stocks on the market.
South Korean retail investors' ownership of Tesla accounted for 1.28% of the EV carmaker's market value of $825.3 billion as of January 22, according to Yonhap News Agency. The sharp rise in investment in Tesla by individual investors occurred against the backdrop of a jump in the price of its shares. TSLA on Friday closed at $846.64, up about 20% from the end of last year.
In 2021 alone, individual investors bought a net $779 million worth of Tesla shares, taking up some 23% of local investors' total net buying of overseas stocks. 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.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.