Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Tesla loses a third of its value for the third time in a year

Published 08/03/2021, 20:48
Updated 08/03/2021, 20:50
© Reuters. FILE PHOTO: Tesla Motors Inc CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne, California

© Reuters. FILE PHOTO: Tesla Motors Inc CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne, California

By Noel Randewich

(Reuters) - Tesla Inc's stock extended losses on Monday and is now down by a third from its January record high, making it the third time in about a year that the electric car maker's shares have corrected that dramatically.

With investors worried about rising interest rates and dumping high-valuation stocks in recent weeks, Tesla's market capitalization has fallen by almost $300 billion since its Jan. 26 record high to $550 billion, moving behind Facebook Inc (NASDAQ:FB), which it overtook in December after joining the S&P 500.

Tesla shares fell over 4% on Monday and were down almost 35% from their peak on Jan. 26. The ARK Innovation ETF, which has 10% of its assets invested https://ark-funds.com/arkk#holdings in Tesla, fell 6%.

(Graphic: Facebook retakes market cap lead over Tesla - https://fingfx.thomsonreuters.com/gfx/mkt/gjnpwzqbyvw/Pasted%20image%201615228205940.png)

Technology and other growth stocks have fallen broadly since Feb. 12, when the Nadsaq closed at its most recent record high. However, Tesla's decline during that time has been much deeper than Wall Street's other heavyweights.

Tesla's surge in recent months is rooted in expectations it will expand car production quickly and profitably. The stock's latest dip follows a tweet by Chief Executive Elon Musk on Saturday that an update on Tesla's planned Cybertruck pickup would likely be provided in the second quarter. Musk unveiled the Cybertruck in 2019.

(Graphic: A 35% slump? No big deal for Tesla - https://graphics.reuters.com/USA-STOCKS/TESLA/nmovazxdepa/chart.png)

The most volatile among Wall Street's largest companies, Tesla's shares have fallen by amounts similar to or greater than the current selloff twice since early 2020. The stock slumped over 60% in February and March last year, when the coronavirus pandemic shocked global markets. After soaring to new highs in August, it dropped 33% before resuming its meteoric rise.

(Graphic: Tesla slumps further than other heavyweights - https://graphics.reuters.com/USA-STOCKS/TESLA/bdwpknolyvm/chart.png)

Tesla is now down almost 30% since the Nasdaq peaked on Feb. 12, reducing its gain in the past six months to about 43%. Since Feb. 12, Apple Inc (NASDAQ:AAPL) is down about 13%, with Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT) and Facebook Inc down less than 10%.

Since Tesla announced on Feb. 8 that it bought $1.5 billion worth of bitcoins, its stock has steadily fallen, while the price of bitcoin has climbed over 10%. Tesla said it bought the bitcoins during January, and if it hypothetically bought them at the mid-point price of about $45,000 for that month, its investment could now be worth around $1.7 billion, according to Reuters calculations.

© Reuters. FILE PHOTO: Tesla Motors Inc CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne, California

(Graphic: Tesla shares part ways with bitcoin rally - https://graphics.reuters.com/USA-STOCKKS/TESLA-BITCOIN/xlbpgdqzjvq/chart.png)

Latest comments

such a bs even musk said tedla is overvalued, so what u exlect he list nothing !! he is still on huge plus
Should of never brought bitcoin Mr Musk, worst thing you have ever done.... maybe you was high at the time. Ha ha ha
But by this time..he already profit 1 billion tho from the btc
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.