Tesla shares fell in premarket trading today in a heavy plunge below the level at which the electric-car maker entered the S&P 500 in December, as investors are moving out of high-flying tech names.
The electric carmaker's shares dipped 6% during premarket trading on Tuesday, after losing 8 percent on Monday for its biggest intraday loss since September.
Tesla has had a stellar ride since 2020, which began at about $85 per share, before reaching the $900 mark on January 25.
Currently trading at about $673 in pre-market transactions, the stock has lost 25 percent from its peak, which technically implies a bear market.
Bitcoin has also swung into a bear market, falling from a peak of $58,354 on February 21 to a low of $45,000 earlier on Tuesday.
READ MORE: Bitcoin Tumbles Further After Yellen's Warning Comment
Tesla is now susceptible to the volatile swings in bitcoin prices after the company bought $1.5 billion of the digital asset. Bitcoin has dropped 15 percent in the last 24 hours, and broke below $50,000 on Tuesday, according to data from coinmarketcap.com
This is partially due to the renewed interest of investors in the beaten-down and cyclical sectors, as stimulus measures have been put in place alongside massive vaccine rollouts. Tesla was the face of disruptive tech stocks, a sector that gained a lot of attention from investors during the peak of the pandemic last year and led the economy out of the Covid-induced troubles.
A seasoned business content writer, financial markets analyst, and tech enthusiast.
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