Tesla shares dropped 6% Tuesday after BYD announced a partnership with DeepSeek to develop autonomous driving technology and plans to offer its Autopilot-like system in most of its new vehicles. Tesla’s stock has declined for five consecutive days, losing nearly 17% and erasing over $200 billion in market value. Analysts at Oppenheimer warned that the growing autonomy race could limit Tesla’s profitability. Morgan Stanley reaffirmed its $430 price target, citing competitive dynamics in the robotaxi market. Investor concerns over Elon Musk’s distractions deepened following reports that he is leading a nearly $97 billion investor bid for OpenAI and increasing his involvement with the Trump administration.
