Tesla Stock Falls After Nvidia Unveils Open-Source Self-Driving AI as Delivery Miss Weighs

Overview

• Shares fell roughly 4%–5% after Nvidia introduced Alpamayo at CES, an open-source vision‑language‑action model meant to speed autonomous driving development for automakers.
• Tesla reported 418,227 Q4 deliveries, a 16% year-over-year decline that missed Wall Street expectations, with about 1.65 million vehicles produced in 2025 for a second straight annual drop.
• China’s BYD overtook Tesla as the top global battery‑electric seller in 2025, underscoring intensifying competition as demand softened in key U.S. and European markets.
• Elon Musk downplayed competitive risk from Nvidia on X, saying the approach mirrors Tesla’s and arguing the remaining autonomy challenges are in the long‑tail of rare driving scenarios.
• Analysts split following the results, with HSBC reiterating a Reduce rating and a $131 target while Wedbush kept an Outperform and a $600 target based on long‑term robotaxi and robotics potential.