Tesla’s stock saw a significant decline of 6% this past Tuesday after Chinese competitor BYD unveiled its plans to create autonomous vehicle technology in collaboration with DeepSeek. The announcement included intentions to integrate an Autopilot-like system in nearly all of its new models, raising concerns that Musk’s electric vehicle company may be lagging in the fierce automotive market.

Moreover, apprehension is mounting regarding Musk’s off-duty commitments, particularly after reports emerged that he is leading a group of investors willing to invest in OpenAI, while also enhancing his involvement with President Trump’s administration.

Over the last five days, Tesla shares have fallen nearly 17%, bringing the price down to $328.50, which translates to a loss exceeding $200 billion in market capitalization.

BYD has quickly become a prominent contender to Tesla, announcing on Monday that it will equip at least 21 of its upcoming models with partially automated driving capabilities—features that include automatic parking and highway navigation.

Currently, Tesla’s vehicles do not support a robotaxi service, and drivers are required to remain alert at all times. In a recent earnings call, Musk projected the launch of “Unsupervised Full Self-Driving” technology and a driverless rideshare service in Austin, Texas, set for June. Meanwhile, Alphabet’s Waymo has already rolled out a robotaxi service in Austin, as well as parts of Phoenix and San Francisco.

“We believe that the competition among Waymo, Tesla, and various Chinese firms is crucial in driving the commercialization of robotaxi services,” wrote Morgan Stanley analysts in response to the recent BYD news. The analysts encourage purchasing Tesla stock, with a price target set at $430.

On Tuesday, Waymo disclosed an expansion of 10 square miles to its robotaxi services in the Los Angeles area.

In a new report, Oppenheimer analysts expressed that the rising competition in autonomy may limit Tesla’s profitability. They noted that even if Tesla adheres to its planned timeline for driverless cars by June 2025, it still competes with numerous autonomous technology providers, indicating potential price and performance competition.

Beyond Tesla, Musk holds the titles of CEO at SpaceX and owner of the social media platform X, along with heading the artificial intelligence venture xAI. He is currently investing significant efforts in Washington, D.C., where he is spearheading the “Department of Government Efficiency” (DOGE) initiative, focused on reducing federal expenditure and regulations.

Investor anxiety surrounding Musk’s various obligations has intensified following recent reports from Monday. His legal representative, Marc Toberoff, confirmed to CNBC that Musk is at the forefront of a consortium aiming to acquire OpenAI for $97.4 billion.

Musk was a founding member of OpenAI in 2015, intending for Tesla to purchase the organization, but he left the board of directors soon after. OpenAI has since transitioned into a for-profit model, notably launching products like ChatGPT. Co-founder and CEO Sam Altman is restructuring OpenAI, while Musk has initiated xAI to compete in the artificial intelligence space.

Analysts from Oppenheimer commented, “While [Tesla] has pivoted towards being a Physical AI player, we see Elon Musk’s bid for OpenAI as a distraction from [Tesla’s] ongoing challenges.”

In a memo on Tuesday, Altman informed OpenAI employees that no formal offer from Musk has been received, reminding them of Musk’s history of making unsubstantiated claims.

Oppenheimer’s analysts also pointed out the added risks related to Musk’s extensive involvement with the Trump administration.

While Musk’s public persona resonates with some segments, they warned that it could alienate consumers and workers, especially as the Trump administration pushes boundaries. They noted that recent vehicle registration data indicates significant drops in California and several European markets.

Tesla and Musk did not provide immediate comments regarding these developments.

WATCH: Tesla remains on course