On Tuesday (23 February), Elon Musk-founded Tesla witnessed a drop in shares by 13 per cent at the opening bell. This loss was not limited to Tesla alone, with other IT firms seeing a drop as well.
However, it cannot be ignored that Tesla witnessed the highest drop. There are talks that this drop could be associated with the fall in Bitcoin's value. On 8 February, Tesla had announced that it has bought $1.5 billion worth of Bitcoin. It had further stated that in the future it would start accepting Bitcoin as a payment for its products.
According to a news report, shares of the electric vehicle maker dipped as much as 13 per cent before bouncing back. Shares finished the session 2.19 per cent lower. It was stock’s worst day since September. On 23 September, Tesla stock slumped, before closing at 10,34 per cent.
On 23 February, shares of Tesla closed at $698.84 per share, a level which was seen on 30 December 2020.
According to Coindesk, Bitcoin, which touched a low of $44,964.49 in a 24-hour period, had seen a surge in its valuation since 2021. The peak of this cryptocurrency was $58,332.36 per Bitcoin. The cryptocurrency's market value crossed the $1-trillion mark on 20 February. However, for the past few days, this popular currency has seen a drop in value.
Meanwhile, shares of the big technology players also dropped on Monday, with Apple, Amazon, and Microsoft each closing down more than 2 per cent.