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South Korean retail traders have continued to favor crypto-related stocks instead of high-profile US tech firms amid growing disappointment with companies like Tesla and the global push for digital assets.

Tesla Loses Ground, Bitmine Gains Momentum

On Monday, Bloomberg reported that Tesla stock has lost ground among South Korea’s retail investors, who ramped up their selling during August in favor of crypto-related equities.

According to the report, the electric carmaker company has seen a $1.8 billion exodus over the past four months, suggesting weakening enthusiasm among one of Tesla’s most loyal global retail investor bases.

A 33-year-old retail trader told the news media outlet that the company has been unable “to win people’s hearts” as it has “failed to lead with its own AI narrative.” The investor, who first bought the stock in 2019, sold out earlier this year to focus on equities that currently have more upside.

Bloomberg calculations of depository data revealed that while the company remains the top foreign stock among South Korean retail traders, individual investors sold approximately $657 million of Tesla stock in August, recording the company’s largest outflows since 2019.

In contrast, retail traders in South Korea favored more volatile bets in August, like crypto-related stocks. During this period, investors poured $253 million into Bitmine Immersion Technologies Inc., which is seen as a proxy for Ethereum (ETH).

As reported by Bitcoinist, South Korean investors purchased $259 million worth of Bitmine stock in July, Bloomberg previously highlighted. According to Korea Securities Depository data, this made the company the most purchased foreign security stock.

Korean Investors Pour Millions Into Crypto Stocks

Data from the Korean Center for International Finance (KCIF) showed that the percentage of crypto-linked equities in the top 50 net-bought stocks by local retail investors increased from 8.5% in January to 36.5% in June before dropping to 31.4% in July.

Citing a report from 10x Research, The Korea Times highlighted that individuals have purchased over $12 billion worth of crypto-related stock in 2025, with Bitmine, Circle Internet Group, and Coinbase leading the sector.

Retail investors’ buying spree reportedly intensified last month, as traders poured $426 million into Bitmine, $226 million into Circle, and $183 million into Coinbase. This marks a shift from the leading trend over the past few years, when Korean retail investors poured into US tech giants.

“Korean investors are pouring billions into crypto stocks, reshaping global flows in ways Wall Street can no longer ignore,” the report affirms. Adding that “the push has been amplified by U.S. and Korean stablecoin legislation, creating a powerful backdrop for this surge in capital.”

Amid the global push for digital assets regulation, the institutionalization of won-pegged stablecoins gained significant attention, with President Lee Jae-myung vowing to address it alongside the status of crypto-based exchange-traded funds (ETFs) during his electoral campaign.

Since then, multiple bills related to the issuance and distribution of KRW-pegged stablecoins have been introduced in South Korea’s National Assembly. Nonetheless, the industry has expressed concerns about the disconnect between the industry and South Korean regulators.

On September 1, the nominee for Financial Services Commission (FSC) Chairman Lee Won-eun stated that digital assets “differ from traditional financial products like deposits and securities in that they lack intrinsic value.”

In his written response to the National Assembly’s Political Affairs Committee, Lee also expressed a negative stance on specific policies related to cryptocurrencies, including whether to allow investment in virtual assets through pension and retirement accounts. This raised concerns among multiple industry players that a one-sided regulatory policy may continue.

Ethereum (ETH) trades $4,366 in the one-week chart. Source: ETHUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

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PancakeSwap has introduced futures contracts tied to major U.S. stocks, enabling users to trade synthetic versions of Apple, Amazon, and Tesla shares directly on the blockchain, according to an Aug. 5 release.

The new feature, live from Aug. 5, allows crypto users to open leveraged long or short positions using only a self-custodied wallet. Trades are executed on BNB Chain and support up to 25x leverage, with pricing designed to mirror traditional equity markets.

Unlike conventional stock trading, these contracts require no brokerage account, registration, or asset custody. Instead, all activity remains fully onchain, marking another step in the platform’s shift toward hybrid financial models that bridge traditional and decentralized assets.

Unlike crypto perpetual futures, which trade around the clock, these stock futures will operate during U.S. market hours, Monday through Friday, from 13:30 to 20:00 UTC, and are accessible via a newly added “Stocks” section in the PancakeSwap interface.

Users can adjust leverage levels and choose their trading direction based on market sentiment.

Perpetual contracts allow speculation on asset price movements without owning the underlying securities. PancakeSwap’s offering tracks stock prices through decentralized infrastructure while avoiding custodial risk.

The platform cautioned that the new derivatives carry significant financial risk. With high leverage, small price moves can result in amplified gains or losses. It urged users to understand the mechanics and risks before engaging in tokenized stock trading.

By integrating traditional equities into its decentralized derivatives platform, PancakeSwap aims to expand investment tools for crypto-native users seeking broader exposure without leaving the blockchain ecosystem.

The move comes amid a wider industry push, especially by centralized exchanges, into tokenized equities and Web3 versions of legacy markets.

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Tesla has been found partly liable in a deadly crash where Enhanced Autopilot was engaged. The payout is hefty.

The payout includes $129 million in compensatory damages, and $200 million in punitive damages against Tesla. Attorneys for the plaintiffs had asked the jury to award damages of around $345 million. The trial in the Southern District of Florida started on July 14.

The suit centered around who shouldered the blame for the deadly crash in Key Largo, Florida. A Tesla owner named George McGee was driving his Model S electric sedan while using the company’s Enhanced Autopilot, a partially automated driving system.

While driving, McGee dropped his mobile phone that he was using and scrambled to pick it up. He said during the trial that he believed Enhanced Autopilot would brake if an obstacle was in the way. His Model S accelerated through an intersection at just over 60 miles per hour, hitting a nearby empty parked car and its owners, who were standing on the other side of their vehicle.

CNBC

Tesla whistleblowers have been telling us the company doesn’t care about safety. I wonder if the shareholders will notice how much this costs them. I can not imagine what it could be that might turn Tesla’s sinking brand image around, but it is clear we have not seen it yet.

Financial services titan JPMorgan Chase is suddenly turning bearish on the stocks of popular tech and restaurant companies as the S&P 500 hits record highs.

JPMorgan analysts say several big-named stocks appear overvalued and may be smart shorting plays for investors, reports Barron’s.

JPMorgan analyst Ryan Brinkman says Tesla (TSLA) currently has a “sky-high valuation” and expects earnings to plummet after President Trump reduced government subsidies for electric vehicle (EV) purchases. Brinkman also predicts that Tesla’s robo-taxi initiative is “likely to disappoint.”

He is also bearish on Tesla’s rival Rivian Automotive (RIVN). According to Brinkman, the firm’s efforts to improve its balance sheet “will likely [be] hampered by reduced EV subsidies and tariffs.”

Next up, JPMorgan analyst Kenneth Worthington says Circle Internet Group (CRCL), the stablecoin issuer, is due for a correction.

“Circle is a market leader in stablecoins with amazing technology, we view competition emerging and its current valuation as excessive.”

Moving on to the social media sector, JPMorgan analyst Doug Anmuth says Snapchat (SNAP) faces continual hurdles, including big brand advertisers’ “volatile” spending as well as the firm’s “poor track record on execution.”

Bumble (BMBL) is also earning a bearish outlook as JPMorgan analyst Cory Carpenter says the dating app stock faces a “structurally challenged” online dating sector, and the firm “is early in its turnaround effort.”

Other stocks JPMorgan analysts say are among the best candidates for investors to look for corrections include the restaurant chain Cheesecake Factory (CAKE), chipmaker Intel (INTC) and fast-food chain Shake Shack (SHAK).

As of Monday’s close, the S&P 500 is trading at record highs at 6,286 points.

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With shares down 21% year to date, Tesla (TSLA 0.04%) is reeling from a combination of weakening electric vehicle (EV) demand, political uncertainty, and a CEO who seems to have misplaced priorities.

The next three years will be a make-or-break period for the company as it attempts to roll out its robotaxis across American cities, while dealing with the potential fallout of unfavorable Trump administration policies. Let’s dig deeper to see how this story might play out for Tesla shareholders.

Is Elon Musk propping up Tesla’s valuation?

It’s impossible to analyze Tesla without considering its controversial CEO, Elon Musk, who plays a significant role in its stock’s perception, even if he isn’t necessarily involved with all its day-to-day decision-making. Love him or hate him, Musk is an incredibly skilled executive. He has a track record of involvement in successful companies ranging from PayPal to Starlink, and typically aims to tackle massive world-changing topics like clean energy, space travel, and brain implants.

The market seems to appreciate Musk’s bold risk-taking leadership style, which helps explain why Tesla still enjoys an incredibly high valuation, despite its increasingly lackluster fundamentals.

With a price-to-earnings (P/E) multiple of 172, the stock trades at a substantial premium over the S&P 500 average of 30 despite posting lackluster operating results. First-quarter revenue dropped 9% year over year to $19.3 million, while operating income collapsed by 66% to just $399 million. With these weak fundamentals, Tesla should probably be cheaper than it is, but the market still has faith in Musk.

A political liability

Over time, it is becoming clear that Tesla’s “Musk premium” is eroding and may soon become a liability. The CEO’s managerial skills have not translated to political acumen. In fact, his antics usually seem to minimize results while maximizing the potential for backlash. A great example of this is the flare-up over the “One, Big, Beautiful Bill” legislation, which passed the U.S. Senate on July 1 and is expected to become law later this month despite Musk’s vocal opposition on social media.

Now, Musk-affiliated companies must face a double whammy over the potential for political retaliation (this may come in the form of regulatory challenges) while also dealing with the contents of the bill itself.

Image source: Getty Images.

The bill could be a crushing burden on a U.S. EV industry that is already struggling with consumer fatigue, high interest rates, and tariffs on imported components. Although the final version is yet to be approved, the Senate has agreed to eliminate the $7,500 tax credit on electric vehicle purchases, while also ending support for residential solar and rolling back vehicle emissions regulations on Tesla’s gas-powered rivals.

These headwinds come at a time when Tesla’s overseas operations are struggling because of political backlash and new, low-cost rivals from China, which often enjoy open support from their government.

What comes next for Tesla?

The next three years will be incredibly challenging for Tesla as the impacts of the act could potentially weaken the market for its products in the U.S. Musk’s political antics could make things worse by alienating some consumers and drawing potential political retaliation from President Donald Trump and his allies as it attempts to pioneer regulatorily-sensitive business ventures like artificial intelligence and self-driving cars.

Historically, it hasn’t been a good idea to bet against Musk because he usually proves his naysayers wrong. That said, these current challenges look daunting, even for him. And they could easily put pressure on Tesla’s sky-high valuation. Investors may want to stay away from the stock until more information becomes available.

No one is surprised to see another bad quarter of sales for Tesla; the only question is how Musk will spin it.

Tesla delivered 384,122 vehicles in the second quarter of this year, wrapping up another weak quarter for the company as it struggles to bring the pace of sales back up to 2023 levels.

That represents a 13.5% drop from the number of cars Tesla delivered in the second quarter of 2022, and it means Tesla runs a real chance of underperforming its total sales figure from 2024. If that happens, it would mean Tesla’s sales will have fallen two years in a row — despite the company once promoting the ability to grow deliveries at 50% annually.

TechCrunch

Pausing production, offering sweetheart financing deals, and lowering prices don’t seem to help. Tesla’s advantage in the market wasn’t quality; it was novelty. There are now more, better options to choose from, and Musk’s chemically induced performance on the global stage has not helped. There will be no pivot to selling EVs to coal-rolling weirdos, but that seems to be their only hope?

Previously:
• The Tesla ‘Cyberbeast’ is exceptionally ugly
• Tesla layoffs hit its diversity and inclusivity programs
• Small stickers on the ground trick Tesla autopilot into steering into opposing traffic lane

Tesla (TSLA -0.67%) is expected to release its second-quarter earnings in late July, making the stock worth considering for investors who can tolerate some potential volatility. The recent robotaxi launch has altered the narrative surrounding the stock, and Tesla may reveal another event that could prove a positive catalyst for the company and the stock. Here’s the lowdown.

Tesla’s delivery data

Elon Musk’s company typically releases its production and delivery data for the quarter shortly after the quarter has ended, but before the quarter’s earnings are reported. That matters because, unlike most other automakers, Tesla’s deliveries are its sales volumes in the quarter. Unlike legacy automakers that sell through dealers, Tesla sells directly to consumers, either online or through its stores.

As such, investors will already be aware of Tesla’s sales and production volumes before the earnings release. It’s challenging to predict the numbers, and you may be reading them by the time this article is published. There are numerous moving parts here, not least of which is the refresh of the Model Y (the world’s best-selling car) , as well as the timing of its availability in various markets.

The bulls and bears battle it out over Tesla stock

The earnings report is likely to reveal data indicating that Tesla lost share in the electric vehicle (EV) market, a trend that has persisted for the past few years. For example, at the end of 2022, Tesla held 58% of the U.S. EV market, a figure that fell to 50.9% by the end of 2023, then to 44.4% by the end of 2024, and finally to 43.5% in the first quarter of 2025.

In addition, sales data from the U.S. and Europe from early in the quarter suggests Tesla is going to need a big sales month in June to stay on track for meeting analyst estimates.

Image source: Getty Images.

The bears will argue that this is a consequence of a tired lineup of vehicles, amid concerns that Tesla is losing its competitive edge.

At the same time, the bulls will see it as an inevitable consequence of the fruition of heavy investments by its competitors, while noting that it’s unrealistic to expect the kind of market share Tesla had in the past when it’s competing with rivals taking heavy losses on every EV sold to win market share. For the bulls, the key to long-term success is Tesla’s ability to lower its cost per vehicle, allowing it to increase EV sales and develop its nascent robotaxi business sustainably.

Three potential positive catalysts for Tesla

There’s something in both bearish and bullish cases. Tesla investors may be willing to accept a decline in market share, but they won’t want to see Tesla’s automotive sales continue to decline, as they did in the first quarter with a 20% year-over-year drop. Moreover, Tesla needs to get back to production growth because building scale is usually the best way to lower the unit cost of production, and that’s how companies learn how to reduce costs in general.

Image source: Getty Images.

Tesla needs to do this because lower-cost vehicles are an integral part of the case for robotaxis. Whether it’s a dedicated robotaxi vehicle like the Cybercab due for volume production in 2026, or existing Tesla EVs transformed into robotaxis using Tesla’s as-yet-unreleased autonomous full self-driving (FSD) software.

In this context, there are three things Tesla’s management could outline on the earnings call, and they are all likely to be positive for the stock:

• Affirm the plan for volume production of the Cybercab in 2026.
• Details of the potential expansion of the robotaxi pilot program.
• On the earnings call in April, management promised “cheaper models to market soon, with the start of production still planned for June,” so presumably it will be able to confirm this in July.

The third event is arguably the most important in the near term. Commercializing robotaxis will take time, and the Cybercab production ramp is understandably tied to that. However, Tesla’s release of lower-cost models in 2025 could revitalize its lineup, start boosting sales, and capitalize on its position as a profitable EV maker with a cost structure that makes EVs more affordable to the mass public.

Image source: Getty Images.

A stock to buy

Tesla remains a speculative growth stock, and there’s no guarantee that its robotaxi development will be successful. That said, the launch is now history, and the narrative around the company’s EV sales and market share could change with the introduction of lower-cost models. If, and it’s a big if, Tesla sticks to its timelines, then the stock is worth buying for investors willing to tolerate risk for a substantial reward.