In a country where economic inequality has inspired the film Parasite and TV series Squid Game, retail investors in South Korea are hoping for a ticket to prosperity by piling up stakes in Elon Musk¡¯s Tesla.
Throughout the covid pandemic, individual South Koreans have piled up Tesla stock, increasing their combined holdings to over $15 billion. This makes them key stakeholders in one of the largest companies in the world by market value. These investors tend to be dip buyers who jump in when the stock retreats, helping curb the declines.
And despite Tesla CEO Musk¡¯s high-profile disputes with regulators; his on-again, off-again bid for Twitter; and the volatility it¡¯s caused in Tesla¡¯s share price, investors seem to find excitement in the drama.?
World's richest person Elon Musk is Tesla¡¯s largest stockholder with a 14.8% stake, whereas individual South Korean retail investors are placed at seventh, holding about 1.6% of Tesla¡¯s equity as of August 17th 2022, according to calculations by Bloomberg based on data from Korea¡¯s central securities depository. That¡¯s more than their combined investments in Alphabet, Apple, Microsoft, and Nvidia, the data shows.?
Amid a widening gap in South Korea¡¯s wealth, many investors see risky bets on stocks and cryptocurrencies as their only realistic path to financial independence. And Musk¡¯s Tesla is a favourite of retail traders worldwide and has generated a following in South Korea as well. Some investors reportedly call themselves Teslams, blending the words ¡°Tesla¡± and ¡°Islam¡± to show the strength of their faith in the company. Some investors also sign off on tweets with the word ¡°Temen,¡± their play on ¡°Tesla¡± and ¡°amen,¡± as per a Bloomberg report.
As per the Bloomberg report, 40-year-old Park Sunghyun and her husband sold their home in Seoul, moved into a rental apartment with their 7-year-old son, and ploughed the family¡¯s $230,000 of savings into shares of Tesla.
On the other hand, Son Gilhun, a 27-year-old forklift driver who lives in Hanam on the southeast outskirts of the capital, reportedly said ¡°I fell into a panic that I might never be able to buy a house. Instead of giving up, I decided to follow my older colleagues in buying stocks.¡±?
He reportedly amassed a stock portfolio worth about $100,000 during the pandemic by adopting a frugal lifestyle and channelling half his $2,000 monthly paycheck into equities. He reduced his Korean holdings and boosted his stake in Tesla in June 2022. His immediate goal is to buy a Tesla and, if he can make enough money, eventually a house.
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