The Nasdaq is getting pummeled in recent days, and leading the stumble is former stock golden child Tesla.
The company’s stock continued to bleed on Monday and is far outpacing the falling fortunes of its alpha brethren Apple and Microsoft.
Tesla has lost a full third off its January peak.
And, perhaps not coincidentally, the downturn came just after Tesla CEO Elon Musk announced a commitment to bitcoin – a $1.5 billion investment that included an endorsement in the cryptocurrency.
According to a Reuters story, Tesla’s market capitalization has dropped nearly $300 billion since Jan. 26.
On Monday, its share price dropped by more than 4%.
Tesla’s surge in recent months is rooted in expectations it will expand car production quickly and profitably, but the stock lost 11% of its value just last week, extending its losing streak to four weeks, the longest since May 2019.
One culprit is the greater push from long-time automakers toward electric vehicles.
A tweet by Musk on Saturday said an update on Tesla’s planned Cybertruck pickup would wait until the second quarter. Musk unveiled the Cybertruck in 2019.
Tesla is not unfamiliar with roller-coaster market performance. The stock fell more than 60% in February and March 2020 at the beginning of the global pandemic’s move into the U.S.
Reaching new highs in August, it then dropped 33% — and then started another rapid rise.
By comparison, since Feb. 12, Tesla has dropped 30 percent; Apple Inc. is down about 13%; Amazon.com Inc., Microsoft Corp and Facebook Inc. are down less than 10%.
Tesla’s market capitalization as of Monday morning stood at around $574 billion, far from its high of $837 billion in late January.
Smaller electric vehicle startups also have fallen on hard times in the market.