Global Indicator for Retail Investors? South Korean Retail Investors "Change Their Tune": Abandon Tesla and Embrace the Digital Currency Sector!

Korean retail investors are withdrawing from Tesla on a large scale, shifting their funds towards cryptocurrency-related sectors.

On September 3rd, according to Bloomberg's calculations, Korean individual investors net sold Tesla shares worth $657 million in August, marking the largest single-month capital outflow since at least early 2019.

Data shows that the total amount of funds withdrawn from Tesla over the past four months has reached $1.8 billion. The exchange-traded fund TSLL, which offers double leverage on Tesla, also experienced a capital outflow of $554 million in the same month, the largest single-month outflow since early 2024.

Meanwhile, these funds are flowing into more volatile assets. For instance, Bitmine Immersion (BMNR) attracted a net inflow of $253 million in August, as the company is viewed by the market as a "proxy stock for Ethereum" due to its newly launched Ethereum treasury platform.

Narrative Fades, Momentum Dwindles

The wavering confidence of Korean retail investors in Tesla stems from growing disappointment with the electric vehicle manufacturer. During the COVID-19 pandemic, they were attracted to high-profile American tech companies like Tesla, but the situation is changing now.

“Tesla used to provide many inspiring narratives, but now it has failed to win hearts,” said a 33-year-old individual investor named Han Jungsu. He first bought Tesla in 2019 but liquidated his holdings earlier this year, turning his attention to stocks he believes have more upside potential.

“It has failed to take the lead in its AI narrative.” This sentiment is spreading among investors, who believe that Tesla's stock price lacks the strong upward momentum it once had, leading them to choose to invest elsewhere.

Turning to Crypto, Chasing New Hotspots

The funds withdrawn from Tesla are seeking new, more dynamic speculative targets, with cryptocurrency-related stocks becoming a popular choice. Among them, Bitmine Immersion (BMNR) stands out, as the company is seen as a proxy for Ethereum due to its newly launched Ethereum treasury platform.

An analysis by research firm Vanda Research found that BMNR is not only popular in Korea but also received the highest attention among U.S. investors. Its investor sentiment score reached 98.4%, surpassing all other stocks on the list. This indicates a common preference among global retail investors for chasing high-volatility, high-momentum assets.

Loyalty Wavers, But Status Remains Intact

Despite the record capital outflow, Tesla's status among Korean retail investors has not completely collapsed. Data shows that Korean retail investors still hold approximately $21.9 billion worth of Tesla shares, keeping it at the top of the list of the most popular overseas stocks, ahead of Nvidia and Palantir, which rank second and third However, the cracks in loyalty have already emerged. Data from Vanda Research also indicates that in the U.S. market, although retail investors' interest in Tesla remains high, their net buying amount is less than half that of the leader Nvidia, and retail investor sentiment has "significantly deteriorated." This further confirms that Tesla's appeal among global retail investors is facing challenges