The stock price of LG Energy Solution has fallen below 300,000 won. This is the first time since its listing in January 2022 that the stock price has dropped below the public offering price of 300,000 won.
Shares of LG Energy Solution traded at 298,500 won in the KOSPI market at 9:09 a.m. on the 16th. The stock price decreased by 2.77% (8,500 won) from the previous day. At the beginning of the session, the price fell to 294,500 won, hitting an all-time low.
The market capitalization of LG Energy Solution has decreased to 69.849 trillion won, dropping to fourth place in market capitalization ranking. Samsung Biologics surpassed LG Energy Solution with a market capitalization of 71.419 trillion won.
After concerns arose over the electric vehicle chasm, the stock price of LG Energy Solution has been struggling to rebound. In particular, worries have increased that demand for electric vehicles may decline as the Republican Party pushes a bill to terminate tax credits based on the Inflation Reduction Act (IRA) early.
The bill put forward by the Republican Party also includes provisions to eliminate the Advanced Manufacturing Productivity Credit (AMPC) benefiting Korean battery companies by the end of 2031. Previously, there were plans to gradually reduce the tax credit amount and abolish it by early 2033.
LG Energy Solution received 457.7 billion won in AMPC in the first quarter (January to March) of this year. The operating profit of LG Energy Solution for the first quarter is 374.7 billion won, but it would turn into an 83 billion won deficit without the AMPC.
However, according to financial information provider FnGuide, securities firms still present an average target price of 416,600 won for LG Energy Solution. Among the securities firms that have revealed their investment opinions this month, Hyundai Motor Securities and iM Securities have maintained the highest target price of 450,000 won. Hana Securities set the lowest target price at 336,000 won.