Tesla Inc stock extended Monday’s losses and is now down a third from its record high in January. It is the third time in about a year that the electric car maker’s shares have corrected this dramatically.
Amid investor concerns over rising interest rates and the dumping of highly valued stocks over the past few weeks, Tesla’s market cap has fallen nearly $ 300 billion since the record high of Jan. 26 to $ 550 billion on the S&P 500.
Tesla stock fell over 4% on Monday, falling nearly 35% from its January 26 high. The ARK Innovation ETF, which has a 10% stake invested assets in Tesla fell 6%.
Tech and other growth stocks have largely fallen since February 12, when the Nadsaq closed at its recent record high. However, Tesla’s decline during this period was much deeper than that of Wall Street’s other heavyweights.
Tesla’s surge in recent months is based on expectations that auto production will grow rapidly and profitably. The stock’s recent drop in price follows a tweet from Chief Executive Elon Musk on Saturday that an update on Tesla’s planned Cybertruck pick-up is expected to come in the second quarter. Musk introduced the Cybertruck in 2019.
Tesla is the most volatile company among Wall Street’s largest companies. Since early 2020, Tesla’s shares have fallen by amounts equal to or greater than the current sell-off. The stock plunged over 60% in February and March last year as the coronavirus pandemic shocked global markets. After hitting new highs in August, it fell 33% before resuming its meteoric rise.
Tesla is now down nearly 30% since the Nasdaq peaked on February 12, and has cut its earnings to around 43% over the past six months. Since Feb. 12, ple Inc is down about 13% while Amazon.com Inc, Microsoft Corp, and Facebook Inc are down less than 10%.
Since Tesla announced on February 8 that it had bought $ 1.5 billion worth of bitcoins, its stock has fallen steadily while the price of bitcoin has risen by over 10%. Tesla said it bought the bitcoins in January, and if it had hypothetically bought them at the median price of about $ 45,000 for that month, its investment could now be worth around $ 1.7 billion by calculations.