Korean retail investors holding Tesla and SpaceX stocks suffered significant losses as both companies' share prices declined sharply, according to data from the Korea Securities Depository as of the 23rd. Tesla holdings totaled approximately $18.5 billion (about 27 trillion won), while SpaceX holdings reached approximately $1.4 billion (about 2 trillion won), bringing total exposure to Elon Musk-led stocks to nearly 30 trillion won. Tesla's stock price fell to $313.03 from a year-start level of $438, a decline of approximately 30%, while SpaceX dropped to $115 from its post-IPO peak of $225, falling below its IPO price of $135. The declines followed Tesla's second-quarter earnings announcement on the 23rd, which showed revenue growth but deteriorating profitability due to price cuts and surging capital expenditures on AI and robotics, and SpaceX's post-listing volatility amid uncertainty over its satellite internet business economics. Korean retail investors, known as '서학개미' (overseas stock ants), have concentrated substantial capital in these two Musk-led stocks, exposing them to heightened volatility in the US stock market.
Tesla Stock Declines 30% from Year-Start Level
Tesla's stock price started the year at $438 and fell to $313.03, a decline of approximately 30%. On the 23rd, immediately following the second-quarter earnings announcement, the stock dropped nearly 15%, erasing $215 billion in market capitalization during that period. As of the 23rd, Korean retail investors held approximately $18.5 billion in Tesla shares, down from approximately $28 billion at the start of the year.
Tesla reported second-quarter revenue of $28.236 billion, an increase of 26% year-over-year driven by higher global vehicle deliveries. However, profitability deteriorated significantly due to price reductions. Capital expenditures surged as the company invested heavily in AI, robotaxi, and humanoid robot projects, causing free cash flow to turn negative for the first time in approximately two years.
During the earnings announcement, Tesla presented more conservative timelines for robotaxi and Optimus commercialization than market expectations. The company maintained its production target for the electric semi-truck but focused on production initiation rather than mass production, raising investor concerns.
SpaceX Stock Falls Below IPO Price of $135
SpaceX listed last month at an IPO price of $135 and briefly surged to $225 before falling to $115, a decline of nearly 50% from its peak and below the IPO price. The company's market capitalization decreased by over $1 trillion from its peak. As of the 23rd, Korean retail investors held approximately $1.4 billion in SpaceX shares, down from a peak of $2 billion on the 12th of last month.
Short Sellers Record $15.5 Billion in Unrealized Gains
Short sellers recorded approximately $15.5 billion in unrealized gains from the stock declines, according to data analytics firm Ortex Technologies. Borrowed shares totaled approximately 360 million, representing 56% of the float.
Starship Test Flight Succeeds on the 24th
On the 24th (local time), SpaceX successfully conducted a test flight of Starship, the large spacecraft designed to realize Musk's space ambitions. Starship measures 124 meters in total height and has a maximum liftoff thrust of approximately 8,240 tons, making it the world's largest and most powerful space launch vehicle. If commercialized, Starship will enable mass deployment of next-generation Starlink satellites in single launches and allow launch vehicle reuse, significantly improving the economics of the satellite internet business.
Market observers noted that technical success and stock price appreciation are separate issues, as future expectations are already substantially reflected in the current share price.
SpaceX Schedules First Earnings Report for the 4th of Next Month
Market attention is focused on SpaceX's first-ever earnings report scheduled for the 4th of next month. Starlink subscriber growth, profitability, and expansion of AI satellite business will serve as key variables for future stock performance.
FAQ
What caused Tesla's stock price to decline by 30% from its year-start level?
Tesla's stock fell from $438 at the start of the year to $313.03 due to intensified electric vehicle competition, deteriorating profitability from price cuts, and surging capital expenditures on AI and robotics that caused free cash flow to turn negative for the first time in approximately two years. The stock dropped nearly 15% on the 23rd following the second-quarter earnings announcement, which showed more conservative commercialization timelines for robotaxi and Optimus than market expectations.
Why did SpaceX stock fall below its IPO price of $135?
SpaceX listed last month at an IPO price of $135 and peaked at $225 before falling to $115, dropping below the IPO price within weeks of listing. The decline occurred amid uncertainty over the economics of its satellite internet business. The company's market capitalization decreased by over $1 trillion from its peak. The successful Starship test flight on the 24th (local time) demonstrated technical progress, but market observers noted that future expectations are already substantially reflected in the current share price.
How much have Korean retail investors lost in Tesla and SpaceX stocks?
As of the 23rd, Korean retail investors held approximately $18.5 billion in Tesla shares and approximately $1.4 billion in SpaceX shares, totaling nearly 30 trillion won in exposure to Elon Musk-led stocks. Tesla holdings declined from approximately $28 billion at the start of the year, while SpaceX holdings fell from a peak of $2 billion on the 12th of last month. The stock declines resulted in substantial unrealized losses, though the exact total loss figure was not specified in the source.
