Hyundai Stock Falls Despite Robot Acclaim as Core Business Falters

Hyundai Motor's stock has seen a significant decline, shedding over 40% from its recent peak, despite widespread praise for its Atlas humanoid robot. The robot's halftime performance at a soccer match, demonstrating goal celebrations and delivering a ball to the referee, garnered attention from international media, highlighting expectations for robotics in manufacturing.

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An unprecedented event in World Cup history occurred at halftime with 80,000 spectators and global football fans watching on TV. A 6-foot-tall humanoid robot performed goal celebrations of Kane, Haaland, Cunha, and Son Heung-min and delivered a soccer ball to the referee.

This positive reception for robotics, a key focus for Hyundai Motor Group Chairman Euisun Chung's future vision, had previously driven the company's stock price up to 780,000 won in early June. However, the core automotive business is struggling. While U.S. sales, particularly of hybrid vehicles, have increased, Hyundai's domestic sales dropped by 4.9%, and European sales saw double-digit declines for two consecutive months in April and May.

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Testing for variables like elasticity and slippage on outdoor grass, not just concrete floors in a lab, will provide key data for future factory deployment.

In contrast, Kia, with its strong electric vehicle lineup, achieved sales growth both domestically and in Europe. This disparity has led analysts to question the sustainability of the stock's rise based solely on future technology prospects. "The logic of the stock price increase triggered by physical artificial intelligence at the beginning of the year is not being accepted by foreign investors," noted Shin Yoon-cheol, a researcher at Kiwoom Securities, who lowered his target price for Hyundai Motor. He emphasized the need for the company to show recovery in its main business, not just new ventures.

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The logic of the stock price increase triggered by physical artificial intelligence at the beginning of the year is not being accepted by foreign investors. This is leading to weakened potential for further gains.

Hydai Motor plans to leverage new model launches in the second half of the year to boost performance. A company representative cited production disruptions in the first half due to factory fires as a factor affecting sales. Upcoming models like the "The All New Grandeur," the full-change "Tucson," and the "The All New Avante," which has received positive design reviews, are expected to drive sales.

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In the first half of the year, there were production disruptions due to fires at domestic and overseas parts factories. We expect new models like the Tucson full-change and the highly acclaimed The All New Avante to drive sales in the second half.