[Good Morning Stock Market] Tesla Hits Lowest in 10 Months... "KOSPI Expected to Start Slightly Lower"

Tesla Investment Opinion and Target Price Downgrade
Burden on Domestic Secondary Battery Industry

Tesla closed at $169.48, down 4.54% compared to the previous session. This is the lowest stock price in 10 months since May 16 of last year. [Image source=Yonhap News]

The Korean stock market is expected to start weak on the 14th. Tesla hit its lowest point in 10 months on the U.S. stock market. Related sectors such as batteries are also expected to be affected in the domestic market.

On the 13th (local time), the Dow Jones Industrial Average closed at 39,043.32, up 37.83 points (0.1%) from the previous trading day. The S&P 500, focused on large-cap stocks, closed down 9.96 points (0.19%) at 5,165.31, and the Nasdaq closed down 87.87 points (0.54%) at 16,177.77.

The notable stock in the U.S. market that day was Tesla. Tesla closed at $169.48, down 4.54% from the previous session. This was due to Wells Fargo analyst Collin Langan lowering Tesla’s investment rating from 'Hold' to 'Sell' and cutting the target price from $200 to $125 in his analysis note. As a result, Tesla recorded its lowest stock price in 10 months since May 16 of last year.

U.S. Treasury yields also rose for the third consecutive day. With the U.S. February Consumer Price Index (CPI) exceeding expectations, concerns increased ahead of the Producer Price Index (PPI) announcement scheduled for the 14th, leading to a rise in yields (and a drop in prices).

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "The long-term (10-year and 30-year) Treasury auctions scheduled this week showed higher-than-expected demand, and due to uncertainty about the inflation path, Treasury yields have generally risen about 20 basis points (1bp = 0.01 percentage points) over the past three trading days."

Researcher Kim added, "It is necessary to pay attention to the negative impact on the electric vehicle and secondary battery value chain caused by Tesla. The KOSPI is expected to start in a slightly weak range."