Leveraged products amplify the impact of Tesla's sharp decline, causing significant losses for South Korean retail investors
On February 28th, during the early trading session of the U.S. stock market, Tesla's stock price fell to $273.6, a cumulative drop of nearly 44% from its high in December 2024. Meanwhile, the London-listed Leverage Shares 3x Tesla ETP (Leverage Shares Tesla 3x Exchange-Traded Product, abbreviated as "TSL3") also dropped over 80% from its peak in December last year. The sharp decline in Tesla's stock price is having a significant impact on high-risk tolerant investors in South Korea, many of whom have made leveraged investments in the American electric vehicle manufacturer. According to data from three South Korean brokerages on February 21st, South Korean investors are the largest holders of the London-listed TSL3, with holdings of approximately 358 billion Korean won (about $245 million)