Elon Musk, CEO of Tesla, speaks at a delivery ceremony for the Tesla China-made Model 3 in Shanghai, east China, on Jan. 7, 2020.
Ding Ting | Xinhua News Agency | Getty Images
Tesla’s shares closed 8.55% on Monday as investors betting on a pandemic comeback rotated out of big tech and piled into cyclical stocks.
It’s Tesla’s biggest drop since September 23, 2020 when it closed 10.34%.
The company’s big tech peers also fell Monday, with Apple, Amazon and Microsoft each closing more than 2%. Overall, the Nasdaq Composite fell 2.5% on Monday while the Dow Jones Industrial Average reversed a loss of 200 points and closed 0.1%.
Tesla’s stock could also have been pulled down by Bitcoin, which slowed the rally on Monday. According to CoinDesk, the coin fell 6% after Bell Monday.
Earlier this month, Tesla announced it had purchased $ 1.5 billion worth of Bitcoin “to provide more flexibility to further diversify and maximize the returns on our cash.” The company also plans to accept payments in Bitcoin.
The company is “on track to get more out of its Bitcoin investments than profits from sales of its EV (electric) vehicles throughout 2020,” said Daniel Ives, an analyst at Wedbush Securities, in a research report over the weekend .
Subscribe to CNBC on YouTube.