Bitcoin’s earnings had recently soared to new highs after Tesla announced two weeks ago that it would add $ 1.5 billion in Bitcoin to its balance sheet.
Tesla Inc. shares erased their year-to-date gains on Tuesday, trading below levels when the electric car maker was added to the S&P 500 index in December.
The stock fell 12% to $ 627.10 on Tuesday in New York, the largest drop since September 8, after falling 8.6% on Monday. The stock is now down 30% from its intraday record high January 25.
Tesla’s drop in the first week amid a wider market sell-off was fueled in part by Chief Executive Officer Elon Musk’s comments over the weekend that prices for Bitcoin and smaller rival Ether “appear to be high”.
Concerns about the value of the cryptocurrency helped clear some of Bitcoin’s profits, which had soared to new highs after Tesla announced two weeks ago that it would add $ 1.5 billion in Bitcoin to its balance sheet.
Smaller stocks of electric vehicles, which usually inherit their daily trading features from Tesla, also fell sharply on Tuesday. The breakneck rally among many EV-only manufacturers slowed significantly in 2021 as investors became increasingly concerned about increased competition from traditional auto companies like General Motors Co. and Ford Motor Co.