Tesla shares fell 14.5% in Thursday trading, marking a steep decline for the electric vehicle maker following the release of its quarterly report on Wednesday evening.
The sharp drop reflects investor disappointment with the company's latest financial performance, which failed to meet market expectations.
Alphabet, the parent company of Google, also faced significant selling pressure.
Shares in the tech giant declined materially alongside Tesla, contributing to a broader downturn in the technology sector.
The simultaneous weakness in two of the market's most heavily weighted stocks amplified the negative sentiment across US equities.
The sell-off in Tesla and Alphabet shares was a primary driver of the broader market decline.