Tech selloff weighs on stocks as investors take profits: Infrastructure Capital

Stocks were off to a rough start to 2025 on Thursday as investors took profits by selling shares of 2024’s big winners.

Weakness in Tesla Inc. drove an initial wobble in shares of highflying tech stocks. Although it is technically categorized as a consumer-discretionary name, Tesla is often lumped in with tech companies.

Weaker-than-expected Tesla delivery numbers for 2024 were largely blamed for Thursday’s weakness, market watchers said. A Tesla Cybertruck was also involved in an explosion outside the Trump International Hotel in Las Vegas on New Year’s Day, although that appeared to have less of an impact on markets.

Shortly afterward, investors appeared to start taking profits in other tech names as well.

This profit-taking was largely to blame for the market’s weakness during the first trading session of the new year, said Jay Hatfield, portfolio manager at Infrastructure Capital.

“At the beginning of the new year, usually the biggest gainers from the past year take the biggest hit,” Hatfield said.

“If Tesla is down, it’s going to hurt sentiment across all tech stocks,” he said, adding, “We’re seeing pretty broad-based selling here.”

Here is where stocks stood in recent trading: