South Korean Tesla Shareholders Lose 1 Tril. Won on Sept. 8

Tesla CEO Elon Musk

Tesla shares plunged 21.06 percent to US$330.21 and its market cap plummeted by approximately 100 trillion won on Sept. 8. Under the circumstances, South Korean Tesla shareholders lost about one trillion won. Their purchase amounted to 583 billion won for the four days preceding the plunge.

The stock price soared about 500 percent and the PER of the company jumped to 400 or so from January to August this year. However, Tesla failed to make it into the S&P 500 index on Sep. 4, institutional investors disposed of their shares, news came out about SoftBank’s option bets, and the stock price plunged. Likewise, Apple, Amazon, Facebook and Google fell 6.73 percent, 4.39 percent, 4.09 percent and 3.64 percent on Sep. 8, respectively.

At present, Tesla is South Korean investors’ favorite foreign stock. Their investment in the company was 4,613.1 billion won on Sep. 4 but 971.5 billion won disappeared on Sep. 8 alone. Their top five picks are Tesla, Apple, Amazon, Microsoft and Nvidia and their investment loss in those companies for that day is estimated at 1,362.1 billion won.