Electric car maker tesla (Tesla) fell hard on the 23rd pre-market, extending the previous bitterly swallowed five consecutive black declines, mainly due to heavy selling pressure on other large technology soaring stocks, coupled with bitcoin recently hit a high after a sharp downward kill brought about by the blow.
Reuters reports that Tesla fell more than 6% in the pre-market on the 23rd, after plunging 8.6% in the previous session. Tesla shares have been soaring since last year, with each share at $85 at the beginning of last year and climbing to the $900 mark on Jan. 25 this year, but have fallen more or less since then, falling to about $657 on the 23rd before the bell, equaling a 27% slide from its all-Time peak, a drop of more than 20%, meeting the technical definition of a bear market.
MarketWatch reports that the last time Tesla fell into a bear market was Sept. 8, 2020, which equates to two bear markets in less than six months.
Bitcoin fell hard from its all-time high of $58,354 on the 21st and almost lost $45,000 during the 23rd, also falling into a bear market, only faster.
A German investor said he had previously started “taking back chips” from Tesla because he thought Tesla’s January purchase of $1.5 billion worth of bitcoin could “backfire” now.
Analysts at Barclays pointed out that the decline in the volume of Tesla’s “Wall Street Bets” (WSB) discussion board on the online forum Reddit may reflect some decline in investor interest in the electric car maker.
Other analysts have also warned that Tesla is still one of the most expensive components of the S&P 500, with an estimated cost-to-benefit ratio of 163 times earnings over the next 12 months.
Recent Comments