Tesla Reclaims No.1 Amid Stock Rally... ELS Also Receiving Love Calls Again

Tesla Regains Top Spot in Overseas Stock Holdings
Recent Strong Stock Rally... 9 Consecutive Trading Days of Gains
Increase in Tesla-Related ELS Issuance Also Resumes

With Tesla's stock price continuing to rise recently, the popularity of Tesla, which had been sluggish domestically, is reviving. It has reclaimed the top spot for the amount of overseas stocks held by domestic investors, and the issuance of Tesla-related equity-linked securities (ELS) is also increasing again.

According to the Korea Securities Depository on the 9th, as of the 5th, Tesla ranked first in the amount of overseas stocks held by domestic investors. The amount held in Tesla stocks reached $14.97094 billion (approximately 20.6838 trillion KRW). Nvidia, which had overtaken Tesla last month to take first place, fell to second with $13.16609 billion. Apple ($5.08248 billion), Microsoft (MS, $4.1469 billion), and the ProShares UltraPro QQQ Exchange-Traded Fund (ETF, $3.53354 billion) followed.

Tesla, which had maintained an unshakable first place with strong support from 'Seohak Ants'?Korean retail investors investing in overseas stock markets?lost its top position to Nvidia, which emerged as the hottest stock this year riding the wave of artificial intelligence (AI), due to a sluggish stock price trend earlier this year. However, as Tesla's stock price has risen continuously recently, investors have turned their attention back. Park Yoon-chul, a researcher at Hi Investment & Securities, said, "Tesla was the most beloved stock among domestic investors before Nvidia's rapid rise, but despite repeated low-price purchases, the stock price decline persisted for a long time, turning it into a love-hate company. However, since the late April low point, Tesla has rebounded by more than 70%, overtaking Nvidia again to become the top stock held by Seohak Ants."

Tesla has risen for nine consecutive trading days recently. During this period, the stock price increased by more than 38%. The stock price, which was $170 a month ago, has surpassed $250. Researcher Park analyzed, "Tesla was excluded from the AI rally at the beginning of the year, causing its stock price to plunge from around $248 to about $140. However, as the AI momentum began to face price burdens, companies like Apple and Tesla, which were excluded from the AI rally but had high price merits, started to rise as alternatives." He added, "Along with price merits, several factors such as full self-driving (FSD) and election-related stories acted as positive catalysts. Most importantly, the strong delivery volume announcement for the second quarter raised expectations for a turnaround in performance since the first quarter, which is a major reason for the recent surge." Earlier this month, Tesla announced that vehicle deliveries from April to June this year totaled 443,956 units. Although this is a 4.8% decrease compared to the same period last year (466,140 units), it exceeded the expert forecast of 439,000 units compiled by market research firm FactSet and increased by 14.8% compared to the first quarter (386,810 units).

Popularity of Tesla is also rising again in ELS issuance. Tesla is the most frequently used underlying asset in mixed and equity-type ELS, consistently ranking first among individual stocks since early 2022. However, the issuance amount of related ELS had been declining this year. According to Yuanta Securities, the issuance amount of Tesla-related ELS decreased from 248.3 billion KRW in January to 136 billion KRW in February, 88.1 billion KRW in March, and 80.8 billion KRW in April. However, it rebounded to 115.3 billion KRW in May and continued its upward trend with 181.1 billion KRW in June. Jeong In-ji, a researcher at Yuanta Securities, explained, "The issuance amount of Tesla-related ELS decreased until April but increased in May and June. Especially in June, the issuance amount more than doubled compared to April."

This content was produced with the assistance of AI translation services.