Tesla loses momentum as Korean investors shift to digital assets

South Korea, one of Tesla’s largest retail bases, recorded net sales of $657 million in August, marking the biggest withdrawal from the U.S. automaker’s stock so far in 2023. Investor movements suggest a reallocation toward crypto assets and blockchain-related stocks, driven by growing interest in higher returns.

Companies such as Bitmine Immersion Technologies attracted net inflows of $253 million, reflecting increased appetite for high-volatility instruments. According to the Korea Center for International Finance, purchases of U.S. big tech stocks dropped significantly, from a monthly average of $1.68 billion between January and April to just $260 million in July.

In the crypto-related segment, the share of investments rose from 8.5% in January to 36.5% in June, before stabilizing at 31.4% in July. This shift is supported by government policies that designate the development of the digital asset ecosystem as a strategic priority.

For investors, this dynamic highlights two directions: the decline of Tesla’s narrative appeal and the rise of crypto as a diversification vehicle. With over 10,000 local investors holding crypto portfolios worth more than $750,000 each, South Korea is positioning itself as a key hub in global digital asset adoption.