Tesla Swoons as Tech Stock Rout Deepens

SourceThe Wall Street Journal
SectorFinancial Markets
CountryMiddle east

The late February tech-stock rout deepened Tuesday, with the Nasdaq Composite Index falling 3% and Tesla Inc. tumbling as much as 12% as rising interest rates prompt a broad re-evaluation of investor growth expectations. The Nasdaq pullback puts the tech-focused index on track for its steepest decline since Sept. 8. Tesla, whose 743% surge last year highlighted the tech-led market rebound from the coronavirus selloff, is now down for 2021 and has lost a quarter of its value since the electric-car firm said Feb.

8 that it had spent $1.5 billion on bitcoin in a bid to boost returns on cash. Other investor favorites were also hit hard in early trading. Moderna Inc., the biotech maker of a major Covid vaccine, dropped 13%. Apple dropped 3.4% and Amazon.com Inc. fell 2%. The tech firms have emerged as a favorite of the small investors who have piled into stock and options trading over the past year, with Nasdaq rising 44% in 2020. But the ...read more...