Hyundai Motor's tech bets face headwinds as core business loses steam

Hyundai Motor's profitability in its auto division is declining, prompting doubts about the viability of its investments in robotics and autonomous driving technologies. The company is heavily investing in Boston Dynamics' Atlas humanoid robot, its own software-defined vehicle (SDV) and autonomous driving capabilities as three key pillars for its future mobility.

However, these businesses are still years away from generating significant earnings, leaving Hyundai increasingly reliant on its traditional auto business, which is under pressure from labor disputes, US tariffs, and growing competition from Chinese automakers in Europe.

The gap between Hyundai's weakening core business and its future growth engines is becoming increasingly evident to investors. The company's shares have plummeted by approximately 60 percent since June 1, when they reached a peak of 783,000 won ($587), falling to less than 320,000 won on Monday. This decline reflects waning confidence in Hyundai's robotics aspirations and rising concerns over its earnings outlook.

The pressure continues to mount as investors grapple with the disconnect between Hyundai's struggling existing business and its uncertain future prospects.