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Tesla shares closed down 8.55% on Monday, as investors betting on a pandemic comeback rotated out of Big Tech and piled into cyclical stocks. It was Tesla’s biggest drop since Sept. 23, 2020, when it closed down 10.34%.
Shares of the company’s Big Tech peers also dropped Monday, with Apple, Amazon and Microsoft each closing down more than 2%. Overall, the Nasdaq Composite fell 2.5% on Monday, while the Dow Jones Industrial Average reversed a 200-point loss to close up 0.1%.
Tesla’s stock could also have been dragged down from Bitcoin, which slowed its rally on Monday. The coin was down about 6% after the bell Monday, according to CoinDesk, and extended losses to sink below $50,000 on Tuesday.
Earlier this month, Tesla disclosed it bought $1.5 billion worth of Bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The company also said it plans to start accepting payment in Bitcoin.
The company is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” Wedbush Securities analyst Daniel Ives said in a research note over the weekend.
Read More: Tesla is slipping again after suffering its biggest fall since September 2020