Clouds. 41   F New York
AI-Powered News Summarizer
Top Stories

4 reasons Tesla's stock is tumbling

February 23, 2021. Summarized by summa-bot.

Compression ratio: 23.2%. 1 min read.

WASHINGTON DC, USA - MARCH 9: Elon Musk, Founder and Chief Engineer of SpaceX, speaks during the Satellite 2020 Conference in Washington, DC, United States on March 9, 2020. (Photo by Yasin Ozturk/Anadolu Agency via Getty Images)

Tesla, the hottest stock in the market for more than a year, has sunk into bear market territory.

That helped feed the recent rally in bitcoin and by some estimates earned Tesla a quick $1 billion profit — more than it has ever made from selling cars in a single year.

But on Saturday, in response to a critic of Tesla's bitcoin investment, Musk tweeted that the price of both bitcoin and another cryptocurrency called Ether "do seem high. " That helped to send the price of bitcoin (XBT) down 9. 3% in trading Monday, which may have helped to drag down Tesla shares.

"Bitcoin is the smart move at the right time for Tesla in our opinion, but on the downside its playing with firecrackers and risks and volatility are added to the Tesla story," said Daniel Ives, tech analyst for Wedbush Securities, who remains bullish on Tesla shares.

Last Thursday, Tesla cut the price of the cheapest version of its Model Y and its best-selling Model 3 cars by $2,000 each.

He said the recent price cuts and other price cuts show that Tesla vehicles do not have the demand that its fans claim.

Those efforts are making some Tesla investors nervous, said Ives, although he believes there will be enough of a shift to EVs for multiple winners among global automakers.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.