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Tesla Correlation to Big Tech Breaks Down. Blame Bitcoin

  • Tesla shares down 4% in July but Nasdaq 100 up more than 2%
  • RBC says one theory is Tesla’s Bitcoin exposure is culprit
Supercharging Stations As Tesla Inc. Readies Production Boost
Photographer: Angel Garcia/Bloomberg

Tesla Inc.’s shares have become less correlated with those of large U.S. technology companies ahead of the electric-vehicle maker’s earnings report and Bitcoin may be the reason why.

The 20-day correlation between Tesla’s stock price and the Nasdaq 100 index has fallen from 0.83 on June 17 to 0.14 as of Wednesday. A decline can also be found in the relationship between the EV company’s shares and the NYSE FANG+ index, which includes the biggest tech firms such as Facebook Inc., Apple Inc., Amazon.com Inc. and Netflix Inc. Tesla reports earnings on July 26.