Tesla CEO Elon Musk speaks at the unveiling of the new Tesla Model Y in Hawthorne, Calif., March 14, 2019.
Frederic J. Brown | AFP | Getty Images
You’re here The recent slide continued on Tuesday, as investors pulled back from high-tech names.
Actions of the electric vehicle manufacturer fell 6% during pre-market trading on Tuesday, after losing 8.55% on Monday for its biggest daily loss since seven.
Tesla is the poster child for disruptive tech stocks, which investors have favored deep in the pandemic. The tech sector drove the market out of the Covid-induced rout last year, but more recently investors have looked elsewhere. Amid the stimulus and large-scale vaccine rollout, some of the poorest and most cyclical sectors now appear more attractive.
Tesla has just had its third consecutive week of losses, and amid recent weakness, the stock fell below its 50-day moving average on Monday for the first time since November. Moving averages are a technical indicator used to determine momentum.
Tesla is also now exposed to fluctuations in bitcoin prices after the company has bought $ 1.5 billion in cryptocurrency. Bitcoin has fallen 15% in the past 24 hours, and crossed $ 50,000 on Tuesday, according to data from Coin Metrics.
Tesla shares drop from record
The Elon Musk-led company ended 2020 as one of the top-performing stocks, and that momentum continued into 2021, with the stock reaching an all-time high on January 25. But from that high level, the stock has fallen 20%.
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 2.46%, with Apple, Amazon and Microsoft all falling more than 2%.
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