Tesla Sinks Below the Price at Which It Entered S&P 500 Index
(Bloomberg) - Tesla Inc. shares are trading below the level they were when the electric car maker was added to the S&P 500 index in December.
The stock fell 9% in New York to $ 650 pre-IPO after falling a similar amount on Monday. By the close of trading on Monday, the stock was down 21% from its intraday record high on January 25. If those declines continue in regular trading, stocks this year would wipe out any previous gains.
Tesla's decline 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 typically inherit their daily trading features from Tesla, also fell sharply in premarket trading. The breakneck rally among many EV-only manufacturers has slowed significantly in the new year as investors feared increasing competition from traditional automakers like General Motors and Ford.
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