Hyundai Motor stocks closed at 401,000 won on July 24, down 7.18% as the company's second-quarter earnings fell short of market expectations and analysts cited slower progress in physical AI business compared to competitors. The stock has declined 50.2% from its June 1 intraday peak of 783,000 won, with the sharp drop driven by Hyundai Motor's preliminary Q2 2024 operating profit of 2.8509 trillion won — down 20.8% year-over-year despite record quarterly revenue. Analysts attribute the underperformance to weak auto sales amid Middle East tensions and production facility disruptions, while highlighting that Hyundai's development pace in humanoid robotics and autonomous driving lags behind rivals like Tesla in a rapidly evolving regulatory landscape.
Hyundai Motor Reports Q2 2024 Earnings Below Consensus
Hyundai Motor disclosed preliminary Q2 2024 consolidated results on July 23, reporting revenue of 49.2153 trillion won and operating profit of 2.8509 trillion won. Revenue increased 1.9% year-over-year driven by foreign exchange effects, reaching a quarterly record, but operating profit fell 20.8% and missed analyst consensus. The company attributed the profit decline to weak vehicle sales stemming from Middle East geopolitical tensions and a production facility fire incident.
Securities firms view Q2 as a bottom, anticipating a turnaround in the second half as production facilities normalize and new vehicle launches take effect.
Stock Falls 50.2% From June Peak on Weak Performance
According to Korea Exchange data, Hyundai Motor closed at 401,000 won on July 24, down 31,000 won (7.18%) from the previous session. During intraday trading the stock fell as low as 390,000 won, marking a 50.2% decline from the June 1 intraday high of 783,000 won.
The July 24 drop followed the company's July 23 earnings disclosure. While Hyundai achieved record quarterly revenue, the operating profit shortfall versus market expectations drove the sell-off.
Analysts Downgrade Price Targets Citing Slow Physical AI Progress
NH Investment & Securities analyst Ha-neul lowered Hyundai Motor's target price from 860,000 won to 760,000 won on July 24, stating the company is preparing to deploy new businesses across physical AI including humanoid robots and autonomous driving, but the pace is slower than market expectations. The analyst noted that despite rapid regulatory reforms and external factors being addressed, Hyundai is falling behind competitors in execution speed.
Analysts identified the fading momentum in robotics and autonomous driving — themes that had driven the stock's first-half rally — as a greater concern than the Q2 earnings miss. Competitors' electric vehicle models are gaining sales traction with low-cost offerings in China and Europe, while Tesla is reportedly beginning mass production of humanoid robots in the US market starting in Q3.
Major brokerages including NH, Samsung, Meritz, Korea Investment, and Shinhan recently cut price targets but maintained expectations that sentiment could reverse following the upcoming CEO Investor Day.
CEO Investor Day on July 26 Expected to Clarify Strategy
Meritz Securities analyst Kim Jun-hyun stated that after Hyundai Motor's Investor Day, the group's physical AI development direction is expected to become more concrete. The analyst anticipates clarification on the specific roles of four entities — Hyundai Motor, Boston Dynamics, Robotics America, and RMAC — in the Atlas humanoid robot business, details on the Saemangeum SPC structure, and confirmation of external investor participation in the Boston Dynamics and AI data center operating SPC.
The CEO Investor Day is scheduled for July 26.
FAQ
What caused Hyundai Motor stocks to fall on July 24?
Hyundai Motor stocks dropped 7.18% to 401,000 won on July 24 following the company's July 23 disclosure of preliminary Q2 2024 results showing operating profit of 2.8509 trillion won, down 20.8% year-over-year and below analyst consensus, despite record quarterly revenue of 49.2153 trillion won.
Why did analysts downgrade Hyundai Motor's price target?
NH Investment & Securities lowered Hyundai Motor's target price from 860,000 won to 760,000 won on July 24, citing slower-than-expected progress in physical AI businesses including humanoid robots and autonomous driving compared to competitors, despite improving regulatory conditions.
What is expected at Hyundai Motor's CEO Investor Day on July 26?
Analysts anticipate Hyundai Motor will clarify its physical AI development strategy at the July 26 CEO Investor Day, including specific roles for Hyundai Motor, Boston Dynamics, Robotics America, and RMAC in the Atlas humanoid business, Saemangeum SPC details, and potential external investor participation in AI data center operations.
