Tesla’s 40% Plunge Burns Koreans Who Plowed Into Leveraged ETFs

Tesla Inc.’s share price slump is taking a toll on risk-loving investors in South Korea, who have plowed into leveraged bets on the US carmaker.

Korean investors were by far the biggest holders of the Leverage Shares 3x Tesla exchange-traded product listed in London, according to Feb. 21 data from three local brokerages compiled by Bloomberg News. The product, which seeks to provide three times the daily return of Tesla shares, has lost more than 80% from a December peak while the Elon Musk-run company’s shares have plunged 41%.