Tesla suffered heavy losses at the opening bell on Tuesday as investors pulled out of high-tech names, although throughout the session Tesla, in addition to Big Tech, recouped the majority of early losses of the day.
Shares of the electric vehicle maker fell 13% – the worst day of action since September – before rebounding from the bottom. Stocks ended the session down 2.19%.
Tesla lost 8.55% on Monday. With Tuesday’s losses, Tesla turned negative for 2021.
The automaker is the poster child of disruptive tech stocks, which investors have favored deep in the pandemic. However, the prospect of further stimulus and large-scale vaccine roll-out has recently made battered and cyclical sectors more attractive to investors.
Tesla is on track for its third consecutive week of losses. The stock also fell below its 50-day moving average for the first time since November. Moving averages are technical indicators used to determine momentum.
The company is also exposed to fluctuations in bitcoin prices after purchasing $ 1.5 billion worth of cryptocurrency. Bitcoin has fallen 10% in the past 24 hours to drop below $ 50,000 on Tuesday, according to data from Coin Metrics.
Tesla ended 2020 as one of the best performing stocks of the year. This momentum continued into 2021, with the action reaching an all-time high on January 25. However, since that peak, the stock has fallen 28%.
The company isn’t the only tech name to have come under selling pressure in recent sessions.
On Monday, the highly technological Nasdaq Composite fell 2.5%, with Apple, Amazon and Microsoft falling more than 2%. The Nasdaq added to those losses on Tuesday, down 1.7%.
Tesla shares drop from record
Subscribe to CNBC PRO for exclusive news and analysis, and live business day programming from around the world.
Note: The content and images used in this article is rewritten and sourced from www.cnbc.com