A Model X SUV sits outside a Tesla store in Littleton, Colo., June 18, 2023. AP-Yonhap

The recent plunge in Tesla's stock price has unnerved domestic investors, but the net-buying trend favoring the U.S. electric vehicle maker remains unchanged, according to the latest data.

Tesla remains at the top in terms of aggregate foreign stock holdings by Korean investors, with Nvidia, Apple, and Microsoft following closely behind, according to the latest figures released by the Korea Securities Depository on Tuesday.

The total amount of Tesla stocks held by Korean investors fell from $13.67 billion at the end of last year to $10.26 billion at present. The doubling of domestic investors' entire holdings of Nvidia over the past few months clearly indicates a significant shift in investor sentiments toward the electric vehicle company.

In spite of a slight shift in overall sentiment, Korean investors continued to net purchase Tesla shares for 16 consecutive weeks, even during the stock's sharp decline over the past months. From April 10 to 16, as the stock price plummeted from $171.76 to $157.11 in terms of closing prices, Korean investors net bought $79 million worth of Tesla shares.

When Tesla's stock price plummeted below the $150 range for the first time in over a year last Thursday, domestic investors snapped up approximately 58 billion won ($42 million) worth of the shares, making them the top net-buying choice among foreign stocks.

Despite Korean investors' unwavering confidence in the U.S. electric vehicle maker, Tesla's stock price continued to hit new 52-week lows, closing at $142.05 on Monday. The stock has fallen over 43 percent in value so far this year due to intensified competition in global EV markets and reduced demand.

Due to the sharp decline, investors who have invested in equity-linked securities (ELS) tied to Tesla's stock price face a growing risk of principal losses. The outstanding balance of ELS linked to Tesla since July last year, when the stock price hit a 52-week high, amounts to approximately 1.13 trillion won.

Projections vary

While global investment banks have tempered their optimism regarding Tesla, the situation cannot be entirely categorized as pessimistic.

Recently, Deutsche Bank downgraded its rating of Tesla from "buy" to "hold," cutting the target price from $189 to $123. Wells Fargo also slashed Tesla's target price from $125 to $120 last week. JPMorgan analyst Ryan Brinkman downgraded Tesla's rating to "sell," giving it a target price of $115.

However, Dan Ives, Wedbush Securities' managing director, maintains an optimistic outlook on Tesla, with a target price of $300, primarily due to the electric vehicle company's unmatched full self-driving (FSD) and autopilot strategy.

Certain analysts express optimism regarding Tesla's corporate value, particularly with the impending launch of the long-promised Robotaxi — an autonomous taxi service — scheduled for August.

Domestic market analysts are also taking a wait-and-see approach regarding the electric vehicle maker's future performance.

"Expectations for Tesla's future earnings have been shattered following the shock in first-quarter sales figures. Currently, it is anticipated that the number of subscribers to the full self-driving (FSD) service will play a crucial role in determining future stock price movements," said Kim Gwang-soo, an analyst at eBest Securities.

Kim Il-hyuk, analyst at KB Securities, pointed out that the current stock price could present an opportunity for bargain hunting.

"It may be difficult to say that it has entered a phase where investors can comfortably buy from a medium- to long-term perspective. But now seems like a phase where investors looking to increase their exposure can gradually enter," Kim said.