[Market Focus] Ecopro Surges 15% on Hopes of Overcoming the EV Chasm

On October 17, Ecopro is surging. This is due to growing expectations that the temporary stagnation in demand for electric vehicles, known as the electric vehicle chasm, will be resolved, as global electric vehicle sales in the previous month increased by 20% compared to the same period last year.

As of 9:45 a.m. on this day, Ecopro is trading at 66,700 won, up 9,000 won (15.60%) from the previous trading day. Ecopro had already soared by 18.15% the previous day.

It is interpreted that investor sentiment has concentrated on Ecopro as expectations for overcoming the electric vehicle chasm have recently increased.

According to the UK market research firm Rho Motion, electric vehicle sales in Europe last month reached 430,000 units, up 36% from the same month last year. In North America, electric vehicle sales last month (220,000 units) increased by 66% compared to a year earlier. These figures include both battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs).

For the period from January to September this year, global electric vehicle sales (14.7 million units) increased by 26% compared to the same period last year. Sales rose in most regions, including China (9 million units, up 24%), Europe (3 million units, up 32%), and North America (1.5 million units, up 11%).

However, the securities industry has assessed that this week’s stock price surge is driven more by rotational trading rather than by performance-based growth. Stocks related to secondary batteries, including Ecopro, have continued to decline recently as the electric vehicle chasm persists, due to the U.S. government’s elimination of electric vehicle subsidies and changes in domestic tariff policies.

Juminwoo, a researcher at NH Investment & Securities, advised, “The recent rise in the secondary battery sector is closer to a rotational rally than to an increase based on upward earnings revisions,” and added, “It is advisable to start buying after the downward earnings revisions caused by slowing U.S. electric vehicle demand are complete.”