Korean Investors Dump Tesla for Crypto in $657M Shift, What’s Next?

In a stunning market move, Korean investors pulled $657 million from Tesla stock in August, marking the largest monthly outflow since 2019.

Once Tesla’s biggest foreign backers, these retail investors are now questioning the company’s artificial intelligence narrative, growth potential, and long-term fundamentals.

Tesla, once held to the tune of $21.9 billion by Korean investors, no longer represents the dream stock. Concerns over leadership risks and slowing innovation have triggered a Tesla sell-off, creating ripples across global markets.

This Tesla vs crypto dynamic illustrates how rapidly retail sentiment can shift, especially in South Korea, where retail traders hold immense influence in global equity flows.

Read Also: 11 Best Crypto ETF 2025 and Everything You Need to Know

The Great Migration: Tesla to Crypto

Source: 10xResearch

While Tesla is losing traction, Korean investors are embracing crypto investment Korea strategies at an unprecedented pace.

According to 10x Research, more than $12 billion has been invested in U.S.-listed crypto companies by Korean investors so far this year. In August alone:

1. $426 million went into Bitmine Immersion Technologies Inc.

2. $226 million was poured into Circle stock

3. $183 million found its way into Coinbase

4. Additionally, $282 million was allocated to a leveraged Ethereum ETF, reflecting a sophisticated approach to gaining exposure to digital assets through traditional markets.

This aggressive buying spree signals a korean crypto trend where retail investors no longer see Tesla as the frontier of innovation, but rather cryptocurrencies and blockchain companies.

Why Crypto? Regulation and Opportunity

The shift is not purely speculative. The South Korea crypto market has evolved significantly with growing regulatory support.

Policymakers are discussing frameworks for stablecoins, Security Token Offerings (STOs), and crypto ETFs, all pointing toward greater institutionalization of digital assets.

Retail investors are seizing the opportunity. Cryptos and crypto-linked stocks promise faster, more dynamic returns than Tesla, which is now seen as stagnant.

Read Also: South Korea New Bill: Can Companies Make Their Own Stablecoins Now?

Korea’s New Investment Paradigm

The move from Tesla to crypto is more than a market rotation, it’s a paradigm shift. Korean investors, once instrumental in boosting Tesla’s global stock value, are now channeling billions into the digital asset economy.

This transition highlights two key forces:

1. Speculation-driven adoption: chasing high returns in crypto markets.

2. Regulatory momentum: slowly legitimizing crypto as a mainstream asset class.

The implications are profound: as Korean investors pivot toward crypto, their collective buying power is reshaping both U.S. equity markets and the global crypto industry.

Read Also: Tesla (TSLA) Stock Price Forecast: 2025–2028 Outlook

Conclusion

Tesla’s reign as Korea’s favorite foreign stock appears to be over. The Tesla stock shift shows that retail traders in South Korea are betting big on a crypto-driven future.

With billions flowing into crypto companies and ETFs, Korea is cementing its place as a global force in shaping digital asset markets.

Stay ahead of the curve, follow the latest insights and updates on the crypto market through the Bitrue blog.

FAQ

Why are Korean investors selling Tesla stock?

They are concerned about Tesla’s slowing growth, doubts over AI leadership, and leadership risks, which has led to a massive Tesla sell-off.

Where are Korean investors putting their money instead?

They are heavily investing in U.S.-listed crypto companies like Bitmine, Circle, and Coinbase, as well as leveraged crypto ETFs.

How much have Korean investors shifted into crypto?

So far in 2025, more than $12 billion has been allocated to crypto-related stocks and funds.

Is regulation in South Korea supporting this trend?

Yes, with discussions on stablecoin frameworks, STOs, and crypto ETFs, the regulatory environment is increasingly favorable for crypto adoption.

What does this mean for Tesla vs crypto in the future?

Tesla may no longer dominate Korean portfolios, as crypto continues to emerge as the preferred investment for higher returns and innovation exposure.