Why Hyundai’s share price has halved from its robot-fueled peak

Hyundai Motor got off to a dazzling start this year with the unveiling of an acrobatic Atlas humanoid robot developed by its U.S.-based robotics subsidiary, Boston Dynamics, in January. 

The robot stole the spotlight at CES, and Hyundai’s shares went on to soar to an intraday record of 787,000 won ($580) on June 1, up 163 percent from the humble beginning price of 299,500 won on Jan. 2, the first trading day of 2026.

The stock has since come tumbling down, losing more than half its value from the June peak. 

Brokerages are now lowering their price targets one after another as enthusiasm for Hyundai’s physical AI ambitions subsides. Ranges that once reached 1.2 million won have fallen to between 500,000 and 900,000 won.

Hyundai shares closed at 350,000 won on Tuesday, down 1.27 percent from the previous day. 

Samsung Securities slashed its target to 500,000 won from 850,000 won, the lowest among local brokerages, citing a lack of clarity over how the automaker stands to profit from its robotics business and a dearth of updates on its viability.

Hyundai signaled a greater focus on autonomous driving while continuing to invest in robotics through its subsidiaries at its CEO Investor Day on Aug. 28.

"Hyundai's role in the robotics industry is a supportive one," a company executive said at the event, after detailing a series of investments and plans for its cars and autonomous driving.

Hyundai aims to put the humanoid on its assembly lines starting in 2028, with a dedicated robot manufacturing plant with 30,000-unit capacity planned for the same year. 

But since the January announcement, the company has offered scant details — not even where or how its factory will be built.

More than 40 percent of current Hyundai shares were acquired at prices above 600,000 won, and over 10 percent above 700,000, suggesting a large number of shareholders are now sitting on losses.

"Since the CEO Investor Day, there have been no follow-up updates on robotics, and expectations are gradually fading," said Ha Neul, an analyst at NH Investment & Securities, who cut the company's share price target to 620,000 won from 760,000 won.

“The transition to EVs, slowing global demand and intensifying competition play as downside risks.” 

 A labor union strike in August cost the company an estimated 60,000 to 70,000 vehicles in lost output, while a semiconductor export boom has pushed up the won, eroding the profitability of car exports.

The automaker posted record revenue in the second quarter, but operating profit fell 20.8 percent from a year earlier to 2.85 trillion won.

On an earnings call in July, Hyundai chief financial officer Lee Seung-jo acknowledged that the company might fall slightly short of its annual sales target.

"We are working to meet our full-year guidance, but given the outlook, we may come in a little below our sales goal," he said, adding that the company was not revising the target and was "doing everything we can to achieve it."

"The company's target of 4.15 million vehicles this year looks difficult to reach," said Yoo Ji-woong of Daol Investment & Securities, who cut the target price from 1 million won to 640,000 won. 

“Production disruptions tied to the Middle East in the first quarter and a full-scale strike concentrated in the third are the basis [for the cuts],” Yoo added, while projecting its annual sales of 4.02 million vehicles, down 2.7 percent from a year earlier.

Even KB Securities, once the most bullish with a 1.2 million won target, lowered its forecast to 900,000 won, predicting that Hyundai's 2026 operating profit would fall by 7.5 percent to 10.6 trillion won, 9.7 percent below the market consensus.

Still, the automaker has not scaled back its initial goal of selling 5.55 million vehicles worldwide by 2030. It plans to raise the EV share of its sales from 23 percent in 2025 to 60 percent by 2030, and to add 1.27 million units of global production capacity over the same period.

BY SARAH CHEA   [[email protected]]