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The electrified shift is short-circuited in Tesla’s stock (TSLA) price.

Tesla’s shares tanked almost 6 percent in pre-market trading on Tuesday to $672, continuing a rout that started on Monday. At current pre-market price levels, to start the week, Tesla’s stock is down about 15 percent. And according to Yahoo Finance Premium data, Tesla shares have now fallen below the $695 price level that the company entered the S&P 500 with back on Dec. 21, 2020, at $672 a share. On the year, the stock is up 1.3 percent, lagging the 3.2 percent gain of the S&P 500. In 2020, shares rose about 695 percent.

It’s not too difficult to see why the stock of Tesla has come under severe pressure.

First up, Tesla CEO Elon Musk tweeted on Saturday that “seemed too high.” That’s unlikely to hear from their supreme leader what Tesla bulls wanted to hear. Recall that Tesla said it had bought $1.5 billion worth of Bitcoin earlier this month.

If Musk believes that bitcoin has hit a near-term peak, it could risk Tesla’s investment in bitcoin and its stock market valuation by extension.

Following Musk’s comments, Bitcoin (BTC-USD) prices have plunged below $50,000. At about $46,000 at present, bitcoin prices on Feb. 21 are almost 20 percent off their record high of about $58,000.

 

BMW CEO Oliver Zipse, meanwhile, took a rare public swipe at Tesla on Tuesday.

“It won’t be easy for Tesla to continue at that speed because the rest of the industry is moving ahead big time,” Zipse reportedly said at a conference, Bloomberg reported.

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The comments essentially challenge the longer-term competitive position of Tesla as more established vehicle manufacturers, such as BMW, enter the markets for electric vehicles.

The Tesla sell-off caught Dan Ives’ attention at Wedbush Securities.

“It’s been a number of factors contributing to this red tape for Tesla. First, Tesla stopping sales of its lowest price Model Y coupled by continued price cuts have led to Street demand worries. To this point, we never viewed this Model Y version as moving the needle and continued price cuts is part of the overall Tesla strategy to spur demand. Second, the Bitcoin sell off has attached itself to the Tesla story as now in the eyes of the Street Bitcoin and Tesla are attached at the hip,” Ives told Yahoo Finance.

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