Tesla’s share price dropped by 8.55% on Monday alone. This comes as investors are placing their bets on a pandemic comeback. Investors have rotated out of large tech companies and into cyclical stocks.
This was the company’s most steep drop since Sept. 23 of last year.
It was not just Tesla that saw falling stock prices on Monday. Other Big Tech prices dropped as well. Apple, Amazon and Microsoft all saw their numbers drop. The Nasdaq Composite itself fell 2.5% the same day.
Another thing that could have affected Tesla’s stock price is Bitcoin. The ultra-popular cryptocurrency rallied on Monday before dropping about 6% after the bell rang.
Tesla bought $1.5 billion dollars just a few weeks ago. Tesla said it purchased the cryptocurrency for ‘more flexibility to further diversify and maximize returns on our cash.’ Tesla also said that it’s going to start accepting payment in Bitcoin.
The popular EV maker is ‘on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020’ according to Daniel Ives, a Wedbush Securities analyst.