Korean battery stocks surge as Tesla boosts investor confidence

Elon Musk, CEO of Tesla. (Reuters/Yonhap)

South Korean battery stocks rallied on Tuesday, buoyed by Wall Street projections that Tesla’s third-quarter electric vehicle deliveries will surpass expectations. Tesla’s stock surged nearly 5 percent overnight, which positively impacted Korea’s secondary battery-related companies.

SK innovation saw a 5.57 percent increase as of 9:19 a.m. Tuesday, trading at 121,200 won ($90.82) or up 6,400 won from the previous session. The gains follow a 4.93 percent jump in Tesla’s stock, which closed at $250 on the New York Stock Exchange, marking the highest level since July 22nd, 2024, and turning Tesla’s year-to-date stock return positive.

Other major Korean battery producers also posted significant gains. LG Energy Solution shares rose by 2.77 percent, while those for Samsung SDI increased by 2.64 percent, LG Chem jumped by 5.64 percent, POSCO Future M surged 4.58 percent, and EcoPro BM and EcoPro rose by 4.49 percent and 4.95 percent respectively.

Stocks of companies that supply battery materials saw even larger gains. L&F surged 11.29 percent, Advanced Nano Products rose by 6.32 percent, Dongwha Enterprise climbed by 6.26 percent, and Soulbrain Holdings was up by 5.47 percent.

Meanwhile, shares of FnGuide hit the daily price limit, soaring 29.90 percent to 38,450 won as of 9:26 a.m. amid an ongoing management dispute with its largest shareholder, Hwacheon Group. Hwacheon Machinery shares also saw an 11 percent increase, while those for Hwacheon Technology rose by 7.14 percent.

The dispute between FnGuide and Hwacheon Group centers around management control, with an extraordinary shareholder meeting scheduled for September 31st, 2024, to address the conflict. Hwacheon Machinery announced a 3.6 billion won investment in FnGuide to diversify its business operations on Monday.