Tesla’s earnings fell short of market expectations, causing a decline in stock prices for South Korean secondary battery-related companies on July 24. LG Energy Solution hit its lowest price since going public in 2022.
At 9:09 a.m., LG Energy Solution shares were trading at 322,500 won on the Korea Exchange, down 1.07% (3,500 won) from the previous day. During the session, the price dropped to 320,000 won, marking an all-time low. Other companies like LG Chem, POSCO Holdings, and POSCO Future M also saw their stock prices hit the lowest levels in a year.
This decline was influenced by Tesla’s announcement of disappointing second-quarter earnings, which fell short of market expectations and raised concerns about a temporary demand slump in the electric vehicle market. Tesla reported an EPS of 52 cents for the second quarter, below the market forecast of 62 cents. Both net income and operating profit decreased by 45% and 33%, respectively, compared to the same period last year.
Meanwhile, General Motors reported an EPS of $3.06 for the second quarter, surpassing the market expectation of $2.75. However, this was attributed to GM’s focus on internal combustion engine vehicles rather than accelerating its transition to electric vehicles, which did not benefit the secondary battery sector.
Additionally, Ultium Cells, a joint venture between GM and LG Energy Solution, recently halted construction of its third plant in Lansing, Michigan, which was set to be operational by 2025.
