Tesla (TSLA) shares fell roughly 2% in early trading, leading a decline across major US technology stocks, after the company reported weaker-than-expected fourth-quarter electric vehicle deliveries, with around 418,000 vehicles delivered, below analyst estimates.
Microsoft and Apple also posted modest losses, contributing to a choppy start for the S&P 500 and Nasdaq after initial gains.
The Nasdaq opened the year higher on strength in semiconductors and AI-related names, including Nvidia and Broadcom, but selling pressure in mega-cap tech stocks pulled the index lower as the session progressed. The S&P 500 showed similar volatility, oscillating between small gains and losses in the opening hours.
By 18:35 GMT, the S&P 500 was trading at 6,835.54, down 0.16%, while the Nasdaq Composite stood at 25,141.13, down 0.43% in the session so far. The Dow Jones Industrial Average was up 0.15%.
Among large-cap movers, AppLovin dropped around 8%, marking the largest fall today, while other notable decliners included Progressive, Carvana, and Workday. Analysts note that rotation out of high-valuation growth stocks has influenced early market weakness.
The market remains focused on upcoming economic data and expected Federal Reserve signals, which could shape risk appetite in the first full week of 2026. The early trading pattern also reflects the lighter holiday volume and profit-taking following strong gains in 2025, particularly in technology.
Overall, large-cap technology remains the key driver of US market direction, with early-year volatility highlighting sensitivity to valuation concerns and broader investor sentiment.