Tesla stock is getting drilled, falls below price it entered the S&P 500

The electrified movement of the Tesla share price (TSLA) is shorted out.
Tesla shares were quoted on the Tuesday before trading on the stock market, up almost 6% to $ 672, continuing the price they started on Monday. At current pre-market price levels, Tesla stock is down about 15% at the start of the week. And at $ 672 per share, Tesla stock has now fallen below the $ 695 price the company entered the S&P 500 at, according to data from Yahoo Finance Premium on Dec. 21, 2020. The share rose by 1.3% compared to the previous year and is thus behind the S&P 500's plus of 3.2%. Shares rose roughly 695% in 2020.
It's not hard to see why Tesla's stock has come under heavy pressure.
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50,000 TL için, 12 ay,% 0 faiz fırsatı!
First, Elon Musk, CEO of Tesla, tweeted on Saturday that the price of Bitcoin was "too high". That's unlikely what Tesla cops wanted to hear from their top leader. Recall that Tesla bought $ 1.5 billion worth of Bitcoin earlier this month. If Musk believes Bitcoin has peaked in the short term, it could jeopardize Tesla's investment in Bitcoin and, with it, its stock market valuation.
Bitcoin (BTC-USD) prices have fallen below $ 50,000 after Musk's comments. At around $ 46,000 now, Bitcoin prices are almost 20% below their record high of around $ 58,000 on February 21.
FEBRUARY 8, 2021: Tesla and CEO Elon Musk purchase $ 1.5 billion in Bitcoin cryptocurrency as part of an investment policy and accept digital currency as a customer payment method for Tesla vehicles and products. - File Photo by: zz / STRF / STAR MAX / IPx 2020 08/14/20 The Tesla dealership in Downtown Manhattan, New York City. (NYC)
In the meantime, BMW boss Oliver Zipse carried out a rare public blow at Tesla on Tuesday.
"It will not be easy for Tesla to continue at this rate as the rest of the industry is making great strides," Zipse said at a conference, Bloomberg reported.
The comments essentially challenge Tesla's longer-term competitive position as more established automakers like BMW enter the electric vehicle markets.
The sale in Tesla caught the attention of Dan Ives at Wedbush Securities.
"It was a number of factors that added to this red tape for Tesla. First, Tesla's cessation of sales of its lowest-priced Model Y, coupled with continued price cuts, has led to concerns about street demand. So far we have this Model Y version never seen as such The move of the needle and the continued price cuts are part of the overall Tesla strategy to stimulate demand. Second, the bitcoin sell-off has tied itself to Tesla history, since now in the eyes of the street bitcoin and Tesla on hang your hips, "Ives told Yahoo Finance.
Brian Sozzi is an editor and presenter at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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