Hyundai Motor's stock price has dropped for three consecutive trading days, falling below the 600,000 won mark. This decline is attributed to a weak robotics theme and growing concerns over labor disputes.
On May 19, the Korea Exchange reported that Hyundai Motor's shares were trading at 612,000 won at 10:10 a.m., down 7.69% from the previous trading day. The stock has continued to weaken, with losses of 5.29% and 1.69% in the prior two sessions, marking a rapid decline over the last three days. The stock has plummeted from around 700,000 won to the low 600,000s, indicating increased pressure at its peak.
Market analysts suggest that profit-taking following a recent surge in stock prices and the associated price pressures have led to this adjustment.
Additionally, labor disputes surrounding the sale of Hyundai Mobis's lamp division are escalating. The Hyundai Motor Group union has labeled the sale as a "destruction of labor relations" and is pushing back against it. Following a joint solidarity declaration from the unions of affiliated companies, the Hyundai Motor and Kia unions have issued a supportive statement, strengthening their collective stance. This has raised concerns about potential strikes, further dampening investor sentiment.
Despite these challenges, the securities industry maintains a positive outlook for Hyundai Motor. Hyundai Securities has raised its target price for the company from 660,000 won to 950,000 won, an increase of 47%. Analyst Jang Mun-soo cited the expected visibility of achievements in the robotics sector and advancements in autonomous driving technology, as well as anticipated strategic collaborations with companies like NVIDIA and Google, as reasons for the optimistic forecast.
* This article has been translated by AI.
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