[Featured Stock] LG Energy Solution Falls Over 4% Amid First Quarterly Loss in 3 Years

Operating Loss Turns to 225.5 Billion KRW in Q4
Quarterly Losses Return After Over 3 Years Since Q3 2021
Weak Demand in Electric Vehicle Front Industries 'Holds Back'

LG Energy Solution is showing weakness. The news of a turnaround to a loss in the fourth quarter appears to have influenced this.

As of 11:15 AM on the 9th, LG Energy Solution is trading at 358,500 KRW, down 4.02% (15,000 KRW) from the previous trading day.

On the same day, LG Energy Solution announced its preliminary results for the fourth quarter of 2024. It recorded an operating loss of 225.5 billion KRW, marking a return to a loss. This is the first quarterly loss since the third quarter of 2021. Sales also decreased by about 20% compared to the same period in 2023, reaching 6.4512 trillion KRW.

LG Energy Solution's poor performance is due to the electric vehicle "chasm (demand stagnation)." Last year, sales of electric vehicles, the upstream industry in major markets such as the United States and Europe, were sluggish. In the case of Tesla in the U.S., 1,789,226 units were delivered in 2024, which is 19,355 units fewer than the deliveries in 2023. This was the first time in 10 years that Tesla's annual delivery volume decreased compared to the previous year.

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