Tesla’s shares sank below the price at which they entered the S&P 500 index

Shares of Tesla Inc. on Tuesday they erased their gains from the year and traded below the level they were at when the electric carmaker entered the S&P 500 index in December.

The stock in New York on Tuesday fell as much as 12% to $ 627.10, the biggest drop during the day since Sept. 8, after falling 8.6% on Monday. Shares are now down 30% from a record daily record of January 25th.

Tesla’s decline in the early week amid wider market sales was prompted in part by comments by CEO Elon Musk over the weekend that the prices of Bitcoin and the smaller rival ether “seem high”.

Concerns about the value of the cryptocurrency helped erase some of Bitcoin’s gains, which rose to new highs after Tesla announced two weeks ago that it had added $ 1.5 billion in bitcoins to its balance sheet.

Smaller stocks of electric vehicles, which are usually traded daily by Tesla, also fell sharply on Tuesday. The peak gathering at many electric vehicle manufacturers has slowed significantly in 2021 as investors have become wary of growing competition from traditional car companies such as General Motors Co. and Ford Motor Co.

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