How Tesla Overtook Nvidia to Dominate South Korea's Stock Market Once Again

How Tesla Overtook Nvidia to Dominate South Korea's Stock Market Once Again
Tesla Triumphs Over Nvidia in South Korean Stock Market

In a recent turn of events, Tesla has reclaimed its position as the top foreign stock in South Korea, a prestigious spot it had briefly lost to Nvidia earlier this year.

According to the Korea Securities Depository (KSD), local investors held $14.67 billion worth of Tesla stock as of July 4, 2024, surpassing the $13.34 billion they had invested in Nvidia. This triumph is particularly impressive considering that Nvidia had taken the lead after Tesla CEO Elon Musk mentioned a potential collaboration between his artificial intelligence firm xAI and the chip giant.

From Amazon to Nvidia, and Back to Tesla

Tesla originally seized the top spot in South Korea’s stock exchange four years ago, dethroning Amazon in 2020. However, Nvidia's recent ascent was highly notable and prompted much speculation about the reasons behind Tesla’s temporary fall. In May 2024, KSD data showed that South Korean investors held $11.07 billion worth of Nvidia stock combined, a boost partly fueled by the excitement surrounding the potential Tesla-xAI-Nvidia collaboration.

Why South Korea is Crucial for Tesla

South Korea is strategically important for Tesla, not merely from an investment perspective but also from a supply chain viewpoint. LG Energy Solution, a South Korean battery supplier, is crucial for Tesla's battery needs. The company is set to start production of the 4680 battery cells at its Ochang factory, signaling a significant step in the future of Tesla's electric vehicles.

Additionally, Tesla has been ramping up its initiatives in South Korea. The automaker recently posted job openings, including a Senior Battery Process Engineer tasked with reworking and remanufacturing battery modules and packs. This move highlights Tesla's commitment to strengthening its operations in the region, arguably a strategy to maintain its newly reclaimed top spot in the stock market.

What's Next for LG Energy Solution and Tesla?

The collaboration between Tesla and LG Energy Solution is expected to expand beyond South Korea. LG plans to extend its 4680 battery cell production to the United States, where it is constructing a cell manufacturing facility in Arizona. This expansion could significantly bolster Tesla's North American operations and ensure a steady supply of cutting-edge batteries for its electric vehicles.

As South Korea continues to solidify its importance in Tesla’s ecosystem, the country’s investors appear confident in Tesla’s vision and potential, driving up the value of Tesla's stocks.


In summary, Tesla’s ability to regain its top position in the South Korean stock market underscores its resilience and the strong trust it commands among investors. With strategic collaborations and expansions like those with LG Energy Solution, Tesla is setting a robust path for future growth, not just in South Korea but globally. Investors and market watchers will undoubtedly keep a keen eye on this dynamic interplay between major corporations and international markets.

Frequently Asked Questions

Tesla reclaimed its top position in the South Korean stock market by surpassing Nvidia in terms of investment value held by local investors.

Tesla briefly lost its top position to Nvidia, partly due to the excitement surrounding the potential collaboration between Tesla's xAI and Nvidia.

South Korea is vital for Tesla not only as an investment hub but also due to its strategic importance in Tesla's supply chain, particularly related to battery needs.

Tesla has been ramping up its initiatives in South Korea, including posting job openings for a Senior Battery Process Engineer, showcasing its commitment to strengthening operations in the region.

LG Energy Solution plans to extend its 4680 battery cell production beyond South Korea to the United States, which could significantly benefit Tesla's North American operations.