Hyundai Motor Stock Plunges on Q2 Profit Miss, US Tariff Concerns

Shares of Hyundai Motor Co. (KS:005380) plunged as much as 8.0% on Wednesday, closing at ₩397,500, as a combination of disappointing quarterly results, new trade headwinds, and fading optimism over its robotics ventures triggered a significant sell-off.

Second-Quarter Profit Misses Forecasts

The world's third-largest automaker reported a 20.8% year-over-year decline in its second-quarter operating income, which fell to KRW 2.9 trillion. This figure came in below the LSEG SmartEstimate consensus of KRW 3.2 trillion.

While Hyundai posted record quarterly revenue of KRW 49.2 trillion, up 1.9% from the previous year, its operating margin compressed significantly to 5.8% from 7.5% a year earlier. During its earnings call, the company also warned that achieving its annual sales volume target may be challenging.

Mounting Headwinds and Fading Hype

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Adding to the pressure, the U.S. government announced new 12.5% tariffs on South Korea, a move that Hyundai identified as a major headwind for its export-heavy business, particularly impacting its U.S. sales.

The stock's decline was also fueled by a shift in investor sentiment regarding the company's robotics division. Enthusiasm for its humanoid business, which had previously helped propel the stock to a 52-week high, has reportedly cooled, leading some brokerages to lower their price targets.

Broader Market Pressure

Hyundai’s steep drop occurred within the context of a wider downturn in the South Korean market. The benchmark KOSPI index fell by as much as 6% during the session, with investors selling off technology heavyweights amid concerns over escalating geopolitical tensions in the Middle East, according to the source report.