Korean retail investors are actively exiting Tesla stocks, transferring $657 million obtained from selling the company’s securities into cryptocurrency assets in August 2025. This marks the largest capital outflow from Tesla since early 2019.
This is reported by Finway
Capital Directed to Cryptocurrencies
A significant portion of the investors’ funds has been invested in Bitmine Immersion Technologies Inc., which is often viewed as a proxy tool for Ethereum. Over the past month, this company has recorded a net investment inflow of $253 million.
In total, over the last four months, the capital outflow from Tesla by South Korean traders has reached $1.8 billion. This indicates a decrease in enthusiasm among investors who were previously considered some of the most devoted in the world. Media reports note that during the pandemic years, South Korean traders actively invested in the stocks of American tech giants, particularly Tesla, which supported the growth of its share prices.
Investors Seeking New Opportunities
Some retail investors believe that Tesla stocks no longer meet their expectations. Some note that the company has lost its uniqueness and has failed to convincingly establish leadership in the field of artificial intelligence.
“Tesla used to offer many inspiring stories, but it has failed to win people’s hearts. It has not managed to become a leader through its own narrative about artificial intelligence,” said 33-year-old investor Han Cheongsu, who purchased shares of the company back in 2019 but sold them in early 2025 to invest in other projects.
Despite the record capital outflow, Tesla remains the most popular foreign stock among Korean retail traders. The total value of the company’s shares owned by Korean investors amounts to $21.9 billion. In comparison, Nvidia Corp. and Palantir Technologies Inc. rank second and third, with the total value of their shares held by Korean traders being significantly lower.
At the same time, even the TSLL exchange-traded fund, which provides double leverage on Tesla stocks, recorded the largest outflow of funds in August 2025 since early 2024 — $554 million.
According to the second-quarter report for 2025, Tesla holds 11,509 BTC on its balance sheet, indicating its interest in the cryptocurrency market.