[Featured Stocks] "Where Exactly Is the Bottom?"... POSCO Holdings and LG Energy Solution Hit New Lows Together

Leading Secondary Battery and Battery Stocks
Prolonged Stock Slump Due to Downturn in Upstream Industry
Former President Trump Declares "Electric Vehicle Subsidy Abolition"

POSCO Holdings, the leader in secondary batteries, and LG Energy Solution, the leader in batteries, both hit new 52-week lows again. It appears that the prolonged stock price slump is due to the worsening conditions in the electric vehicle market.

As of 9:35 AM on the 28th, POSCO Holdings, the leader in secondary batteries, is trading at 359,000 KRW, down 0.14% (500 KRW) from the previous day. This marks the fifth consecutive day of hitting new intraday 52-week lows.

LG Energy Solution, the leader in batteries, is also trading down 0.76% at 325,500 KRW. This is both a 52-week low and the lowest price since its listing.

Secondary batteries and batteries are heavily influenced by the conditions of the upstream electric vehicle market. This year, electric vehicle demand has been sluggish, and the timing of interest rate cuts has been delayed, resulting in poor market conditions. Moreover, negative factors that could dampen investor sentiment are piling up, such as former President Trump, the Republican presidential candidate, declaring that he will "sign an executive order to abolish electric vehicle subsidies on the first day of his term."

Tesla, the leading electric vehicle company in the U.S., sold 387,000 units in the first quarter of this year, down 8.5% year-over-year and about 20% compared to the previous quarter. This is the first time since Q2 2020 that electric vehicle deliveries have decreased year-over-year. Hyungwoo Park, a researcher at SK Securities, said, "If Trump wins the U.S. presidential election, uncertainties such as changes to the U.S. Inflation Reduction Act (IRA) policy will increase."