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 stock slid again 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 most of those losses. At 10:30 a.m. on Wall Street, shares were down 3%.
Tesla shed 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 in the depths of the pandemic. 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 finished 2020 as one of the top-performing stocks of the year. That momentum carried into 2021, with the stock hitting an all-time high on Jan. 25. However, since that high, the stock has tumbled 28%.
The company is not the only tech name that’s experienced selling pressure in recent sessions.
On Monday, the tech-heavy Nasdaq Composite dropped 2.5% as Apple, Amazon and Microsoft fell more than 2%. The Nasdaq added to those losses on Tuesday, dropping 1.7%.
Tesla shares tumble from their record high
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
Tesla stock slid again as investors rotated out of high-flying tech names.