South Korean Retail Investors Dump Tesla Shares, Turn to Crypto

South Korean retail investors, once among Tesla’s most loyal global backers, are pulling back from the electric vehicle giant as enthusiasm wanes and interest shifts toward cryptocurrencies and other high-risk assets.

In August 2025, individual investors in South Korea sold a net US$657 million of Tesla shares, marking the largest monthly outflow since at least early 2023, according to Bloomberg’s analysis of depository data.

Instead of Tesla, traders have turned to riskier bets such as Bitmine Immersion Technologies, a company viewed as a proxy for Ether, which drew US$253 million in net inflows last month.

The shift signals a broader change in sentiment. South Korean retail investors, who were once known for amplifying Tesla’s stock rallies with aggressive buying, are increasingly moving their funds elsewhere.

“Tesla used to offer a lot of inspiring narratives, but it has failed to win people’s hearts,” said Han Jungsu, a 33-year-old investor who first bought Tesla stock in 2019 but exited earlier this year. “It has failed to lead with its own AI narrative.”

Despite the selloff, Tesla remains the top foreign stock among South Korean retail investors, who still collectively hold about US$21.9 billion worth of the company’s shares. By comparison, Nvidia and Palantir Technologies trail far behind as the second and third most popular foreign equities.

Leverage bets on Tesla are also losing momentum. The exchange-traded fund TSLL, which offers double-leveraged exposure to Tesla, recorded its largest monthly outflow since early 2024, with US$554 million withdrawn in August, depository data showed.

The data highlights a growing disillusionment with Tesla in South Korea, as investors chase new narratives in cryptocurrencies and alternative tech plays.