Tesla’s extends 2-day plunge to 17% as epic rally takes a breather

Tesla’s extends 2-day plunge to 17% as epic rally takes a breather

Investors continued to dump Tesla in early Tuesday trading, dragging shares to their lowest level since late December.

The automaker sank as much as 9% before markets opened. The drop is set to extend a three-day losing streak for Tesla stock that intensified at the start of the week. The Wednesday-to-Monday losses have seen Tesla's total market cap drop by $80 billion and led CEO Elon Musk to relinquish his title of the world's wealthiest person.

Tesla traded at a record high of $900 just one month ago as extreme bullishness toward the company's growth fueled massive gains. Valuation concerns cut into the rally and saw shares waver around $850 through much of February.

Shares closed 9% lower on Monday after the company reportedly halted new orders for the lowest-price version of its Model Y crossover. Musk clarified in a Monday tweet that the model was still available "off menu," adding he doesn't think the vehicle's range "meets the Tesla standard of excellence."

The move came less than a week after Tesla slashed the variant's price to $39,990 from $41,990. The automaker also lowered prices for longer-range Model Y versions and its Model 3 sedan.

The price adjustments are "all a poker move" meant to