South Korean secondary battery stocks are tumbling on Tuesday following a more than 5 percent plunge in Tesla Inc. shares.

Shares of Samsung SDI Co. were trading 1.4 percent lower at 388,500 won ($278) as of 10:40 a.m. on Tuesday while those of SK innovation Co. 1.52 percent down at 103,700 won.

LG Energy Solution Ltd. fell 0.94 percent to 369,500 won.

Shares of L&F Co. were trading 1.13 percent lower while those of Lotte Energy Materials Corp. fell 3.46 percent and POSCO Holdings Inc. declined 2.3 percent.

The stocks have been affected by overnight news that Tesla announced a significant workforce reduction as part of a cost-cutting measure amid an EV slowdown.

More than 10 percent of the total workforce is expected to be affected.

The announcement pushed Tesla‘s stock price to close down more than 5 percent on Monday on the New York Stock Exchange.

Shares of Tesla lost about 35 percent this year.

Shares of Samsung Electronics Co. were also affected by sluggish U.S. chip stocks on Tuesday.

The stock was trading 2.68 percent lower at 80,000 won as of 10:40 a.m.

Shares of SK hynix Inc. lost 4.62 percent to 179,500 won.

The decline comes despite the U.S. Department of Commerce’s announcement on Monday of a $6.4 billion grant to Samsung Electronics for investing in large-scale chip production facilities under the U.S. CHIPS and Science Act.

Shares of Nvidia Corp. fell 2.5 percent on Monday while those of Broadcom Inc. declined by 2.5 percent and those of Advanced Micro Devices Inc. by 1.8 percent.

By Pulse

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