Elon Musk, Tesla CEO, speaks during the launch of the new Tesla Model Y on March 14, 2019 in Hawthorne, California.
Frederic J. Brown | AFP | Getty Images
Tesla’s most recent decline continued Tuesday as investors turned away from high-flying tech names.
The electric vehicle maker’s shares fell 6% during premarket trading Tuesday after losing 8.55% on Monday for their biggest daily loss since September.
Tesla is the figurehead for disruptive tech stocks that investors favored in the depths of the pandemic. The tech sector led the market out of the Covid-induced router last year, but more recently investors have been looking elsewhere. Amid stimulus measures and a widespread vaccine roll-out, some of the rundown and cyclical sectors are now looking more attractive.
Tesla is on track for its third straight week of losses. Given the recent weakness, the stock fell below its 50-day moving average for the first time since November. Moving averages are a technical indicator used to determine momentum.
Tesla is now also exposed to the volatility in Bitcoin prices after purchasing $ 1.5 billion of the cryptocurrency. Bitcoin is down 15% in the past 24 hours and broke below $ 50,000 on Tuesday, according to Coin Metrics.
Tesla shares are falling from their record high
The Elon Musk-led company finished 2020 as one of the best performing stocks, and that momentum continued through 2021, with the stock hitting an all-time high on Jan. 25. However, since that high water mark, the stock has fallen 20%.
The company isn’t the only tech name that has come under selling pressure in recent sessions.
On Monday, the tech-heavy Nasdaq Composite fell 2.46% as Apple, Amazon and Microsoft all fell more than 2%.
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