Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019.
Frederic J. Brown | AFP | Getty Images
Tesla’s recent slide accelerated on Tuesday as investors rotated out of high-flying tech names.
Shares of the electric vehicle maker dipped as much as 13% — the stock’s worst day since September — before recovering the majority of those losses. At 10:30 a.m. on Wall Street, shares were down 3%.
Tesla slid 8.55% on Monday, and the stock is now down more than 15% for the week. With Tuesday’s losses, Tesla turned negative for 2021.
The car maker is the poster child for disruptive tech stocks, which investors favored during the depths of the pandemic. The tech sector led the market out of the Covid-induced rout last year. However, the prospects of new stimulus measures and a widescale vaccine rollout have recently made beaten-down and cyclical sectors more attractive to investors.
Tesla is on track for its third straight week of losses. The stock also broke 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 now exposed to the swings in bitcoin prices after buying $1.5 billion of the cryptocurrency. Bitcoin has dropped 10% in the last 24 hours to break below $50,000 on Tuesday, according to data from Coin Metrics.
Tesla shares tumble from their record high
Tesla finished 2020 as one of the top-performing stocks of the year. That momentum carried into into 2021, with the stock hitting an all-time high on Jan. 25. However, since that high-water mark, the stock has tumbled 28%.
The company is not the only tech name that’s experienced selling pressure in recent sessions.
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