Korean retail investors are conducting a massive exodus from Tesla Motors, redirecting their capital toward cryptocurrency-related sectors.
On September 3rd, according to Bloomberg calculations, Korean individual investors recorded a net sale of $657 million worth of Tesla Motors stock in August, marking the largest single-month capital outflow since at least early 2019.
Data reveals that over the past four months, total capital withdrawn from Tesla Motors has reached $1.8 billion. The exchange-traded fund TSLL, which provides double leverage exposure to Tesla Motors, also experienced $554 million in outflows during the same month, representing the largest monthly exodus since early 2024.
Simultaneously, these funds are flowing into more volatile assets. For instance, Bitmine Immersion (BMNR) attracted $253 million in net inflows during August, as the company is viewed by markets as an "Ethereum proxy stock" due to its newly launched Ethereum treasury platform.
**Fading Narrative, Lost Momentum**
The erosion of Korean retail confidence in Tesla Motors stems from growing disappointment with the electric vehicle manufacturer. During the COVID-19 pandemic, they were attracted to high-profile U.S. technology companies like Tesla Motors, but circumstances are now changing.
"Tesla Motors previously offered many inspiring narratives, but now it has failed to capture hearts," said Han Jungsu, a 33-year-old individual investor who first purchased Tesla Motors in 2019 but liquidated his position earlier this year to focus on stocks he believes have greater upside potential.
"It has failed to establish leadership in its own artificial intelligence narrative." This sentiment is spreading among investors who believe Tesla Motors stock lacks the robust upward momentum it once possessed, prompting them to redirect capital elsewhere.
**Turning to Crypto, Chasing New Hotspots**
Capital withdrawn from Tesla Motors is seeking new, more dynamic speculative targets, with cryptocurrency-related stocks becoming popular choices. Among these, Bitmine Immersion (BMNR) stands out particularly, as the company is viewed by markets as an Ethereum proxy due to its newly launched Ethereum treasury platform.
Analysis by research firm Vanda Research found that BMNR is not only sought after in Korea but has also garnered the highest attention among U.S. investors. Its investor sentiment score reached 98.4%, exceeding all other stocks on the list. This indicates that the preference for chasing high-volatility, high-momentum assets shares certain commonalities among global retail investors.
**Shaken Loyalty, but Position Intact**
Despite record capital outflows, Tesla Motors' position in Korean retail investors' hearts has not completely collapsed. Data shows Korean retail investors currently hold approximately $21.9 billion worth of Tesla Motors stock, maintaining its position as the most popular overseas stock, ahead of second and third-ranked NVIDIA and Palantir.
However, cracks in loyalty have emerged. Vanda Research data similarly indicates that in the U.S. market, while retail interest in Tesla Motors remains high, net purchases amount to less than half of leader NVIDIA's figures, with retail sentiment "notably deteriorating." This further confirms that Tesla Motors' appeal among global retail investors is facing challenges.