Shares of Tesla (NASDAQ:TSLA) fell 8.55% on Monday, their biggest drop since September of last year, as investors betting on a pandemic comeback rotated out of technology and piled into cyclical stocks.
On September 23, 2020, Tesla shares closed down 10.34%. Shares of other big technology companies also dropped Monday, with Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) each closing down more than 2%. Overall, the NASDAQ Composite index fell 2.5% on Monday, while the Dow Jones Industrial Average reversed a 200-point loss to close up a slight 0.1%.
Tesla’s stock could also have been dragged down by Bitcoin, which slowed its rally on Monday.
Earlier this month, Tesla disclosed that it had bought $1.5 billion worth of Bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The company also said it plans to start accepting payment in Bitcoin.
Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020,” Wedbush Securities analyst Daniel Ives said in a research note to clients last weekend.