Nickel drops over 2% as Tesla share falls

Nickel prices fell on Wednesday, as the US dollar rise against its major peers, amid pressure on Tesla shares, as it heavily uses nickel in the manufacturing of its electric vehicles batteries.

CEO of Tesla has betted on nickel as a promising and reliable metal in increasing production of the battery industry.

However, Tesla has moved recently to cut the prices of some vehicles and stopped receiving orders for its Model Y cars.

Tesla also moved to investing in Bitcoin, which is seeing a bear market, and this sparked criticism of Elon Musk due to this investment.

The dollar index rose against a basket of currencies at 90.2 points as of 14:26 GMT, after it hit a high of 90.3 points and a low of 89.9 points.

As of 14:36 GMT, nickel spot futures rose 2.2% to $19,255.2 per tonne.