Retail Investors Dump Tesla as Stock Tanks

  • By Hong Jun-ki

    May 18, 2021 11:30

    Retail investors in Korea have dumped US$43.27 million worth of Tesla shares so far this month as the popular stock tanked.

    Tesla, together with Samsung Electronics, epitomized the recent stock-market craze among small investors in Korea and had been the most popular foreign stock since October last year.

    But retail investors got the jitters when the share price started wobbling. After peaking at $900.4 in intra-day trading on Jan. 25, the stock plunged to just $589.74 on May 14 and the valuation of the Tesla shares held by Korean retail investors fell from $11 billion in late January to $7.6 billion.

    Tesla CEO Elon Musk also made retail investors nervous by blowing hot and cold on cryptocurrencies. Last Wednesday he tweeted that Tesla will not accept Bitcoin, just a couple of months after suggesting that cryptocurrency could be used to buy Tesla cars.

    "We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," Musk tweeted, referring to the enormous amounts of electricity needed to mine one Bitcoin.

    Just two days later, he tweeted that he was working with dodgecoin developers "to improve system transaction efficiency" despite calling the digital coin a "hustle" on May 8, causing its price to tumble. 

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