Tesla shares closed at -8.55% on Monday, as investors betting on a pandemic return withdrew from Big Tech and opted for cyclical shares.
This is Tesla’s biggest drop since September 23, 2020, when it closed -10.34%.
Other Big Tech stocks also fell on Monday, with Apple, Amazon and Microsoft closing more than 2% each. Overall, the Nasdaq Composite fell 2.5% on Monday.
Another reason for Tesla’s decline could be Elon Musk himself after his comments over the weekend that the prices of bitcoin and the smaller rival Ether “look high”. The tweet came two weeks after Tesla announced it had added $ 1.5 billion in bitcoin to its balance sheet, causing a 50% price jump in the already growing digital asset.
Tesla owners have already gone through this. In May 2020, Musk helped bring down Tesla’s shares by 10% after writing on Twitter that the price of the electric car manufacturer was “too high.”
The company is set to make more of its bitcoin investments than profits from the sale of its EV cars (electric vehicles) throughout 2020.
Junior Trader Mert Mustafa