South Korean investors, known for their appetite for high-risk trades, are suffering major losses from leveraged bets on Tesla (TSLA) as the stock continues to slide.
According to Feb. 21 data, Korean investors were the largest holders of the Leverage Shares 3x Tesla exchange-traded product (ETP) listed in London. This product, which amplifies Tesla’s daily returns by three times, has lost over 80% from its December peak, mirroring Tesla’s 41% decline in the same period.
Key Figures:
🚨 Tesla 3x ETP losses – Down 80%+ since December
📉 Tesla stock performance – Down 41%
💰 Korean investors’ stake – 358B won ($245M) in the London-listed Tesla 3x ETP (90%+ of its total assets)
⚠️ US-listed 2x Tesla ETF – Down 70% from Dec. 17 peak, with Koreans holding $1.5B (43% of total fund assets)
Mirae Asset Securities Co., a major Korean brokerage, has responded by suspending orders for some of the riskiest leveraged ETPs to protect investors from further losses.
High-Risk Appetite Meets Market Reality
Korean retail investors, often referred to as “mom-and-pop traders,” have a history of chasing high-volatility assets to build wealth quickly. Their losses on Tesla ETPs add to past heavy downturns in Bitcoin (BTC-USD) and China-linked structured products.
Bora Kim, APAC head of strategy at Leverage Shares, noted:
“Tesla has long been a favorite among Korean investors, and this enthusiasm naturally extended to leveraged products like TSL3. The high volatility is part of the appeal, but these products are meant for short-term trading.”
With US megacap stocks under pressure from Trump’s tariff policies and rising Chinese tech competition, speculative ETPs that once thrived on an unstoppable bull market are now crumbling. For risk-loving Korean investors, the ride has become increasingly treacherous.