Tesla (TSLA) is among the U.S. stocks that had a rough morning on Monday with Tesla stock down over 4%.
Nasdaq was hit especially hard, dropping about 63 points or 1.5%. Tesla, Netflix (NFLX) and Facebook (FB) are among the index’s recent outperformers that took a tumble today.
“These are all stocks that have had enormous gains over the last year,” said Federated Investors portfolio manager Matthew Kaufler.
“Those are high-valuation stocks,” he said. “And when you talk about a risk-off trade where people are withdrawing capital from riskier areas, that where people pull from first, stocks that have had significant run ups.”
TSLA stock is down about 4.33% in early trading Monday.