Elon Musk, Tesla CEO, speaks during the launch of the new Tesla Model Y on March 14, 2019 in Hawthorne, California.
Frederic J. Brown | AFP | Getty Images
Tesla suffered significant losses at Tuesday’s opening bell as investors strayed from soaring tech names, though Tesla, in addition to Big Tech, reclaimed most of the day’s early losses throughout the session.
The electric vehicle maker’s shares fell as much as 13% – the stock’s worst day since September – before bouncing off the lows. At 3:15 p.m. on Wall Street, stocks fell less than 2%.
Tesla lost 8.55% on Monday. With Tuesday’s losses, Tesla turned negative for 2021.
The automaker is the figurehead for disruptive tech stocks that investors favored amid the depths of the pandemic. However, the prospect of new stimulus measures and a widespread introduction of vaccines has recently made rundown and cyclical sectors more attractive to investors.
Tesla is on track for its third straight week of losses. For the first time since November, the stock fell below its 50-day moving average. Moving averages are technical indicators used to determine momentum.
The company is now also exposed to the volatility of bitcoin prices after purchasing $ 1.5 billion of the cryptocurrency. According to data from Coin Metrics, Bitcoin is down 10% in the past 24 hours and dropped below $ 50,000 on Tuesday.
Tesla finished 2020 as one of the best performing stocks of the year. That momentum continued through 2021, when the stock hit an all-time high on Jan. 25. However, since that high, the stock has fallen 28%.
The company isn’t the only tech name that has come under selling pressure in recent sessions.
On Monday, the tech-heavy Nasdaq Composite fell 2.5% while Apple, Amazon and Microsoft fell more than 2%. The Nasdaq contributed to those losses on Tuesday, falling 1.7%.
Tesla shares are falling from their record high
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