Tesla is down, but this crypto stock is really getting crushed

The stock market gave a mixed development on Thursday, with Dow Jones Industrial Average (^DJI 1.05%) with solid gains while other major market benchmarks lost ground. The performance of a single company helped boost the Dow significantly, while overall investors seemed uncertain about what the macroeconomic picture will look like in the near future.

Among falling stocks, Tesla (TSLA -5.85%) was the most notable company, as its investor presentation late Wednesday left shareholders wanting more. However, a stock related to the cryptocurrency industry was hit much harder on Thursday, when the company expressed doubts about its future as a going concern. Read on for more on what Tesla said and to find out which stock gave shareholders a much steeper loss.

Elon Musk draws yawns from Tesla shareholders

Shares in Tesla fell 7% in early afternoon trading on Thursday. The downturn came as shareholders seemed disappointed by what they heard – and didn’t hear – at the company’s investor day presentation.

CEO Elon Musk talked a lot about the potential that the energy transition has, not just for the electric car market, but more broadly. A supportive cast of several Tesla executives discussed broader strategic plans for the automaker, including investments in a new manufacturing facility in Mexico and efforts to become more efficient in manufacturing.

Despite the broad discussion, Tesla failed to deliver anything particularly important in terms of newsworthy announcements. Notably, the automaker didn’t announce a new vehicle or other major product releases, and the presentation didn’t include many specifics about how quickly to expect progress on key strategic fronts.

Tesla stock moves on perception as much as fundamentals, and the investor day was an opportunity for the EV pioneer to continue its string of high-profile presentations. The shareholders are now worried that the upward momentum in the car stock from earlier in 2023 may reverse course.

Silvergate Capital is nervous about the future

Today’s biggest decline came from Silvergate capital (SAY -57.72%). Bank shares fell more than 50% just after midday on Wall Street.

The decline began shortly after the closing bell late Wednesday, when Silvergate filed a filing with the US Securities and Exchange Commission. The filing indicated that Silvergate would not be able to file its 10-K annual report on time, citing a series of events that have occurred since the company released preliminary numbers on Jan. 17.

In particular, Silvergate said it had sold additional investment securities after the end of last year beyond what it had previously expected to repay advances from the Federal Home Loan Bank of San Francisco. These sales will generate further losses which in turn will have a negative impact on capital adequacy.

Worst of all, Silvergate said that in light of these issues, it is now looking at whether it will have the ability to continue as a going concern through 2023. With the bank at risk of being less than well capitalized according to regulatory guidelines, Silvergate is reassessing rightly their business strategies.

Silvergate has been the deposit bank of choice for many cryptocurrency companies, but signs of financial weakness have begun to prompt some crypto customers to look at moving their banking relationships elsewhere. The resulting loss of confidence could lead to a rush to the exits for Silvergate customers, which is why shareholders are more worried than ever.