Tesla’s 2026 slump deepens as deliveries fall and Nvidia ramps up competition
Tesla faced a challenging start to 2026 as its stock (nvidia stock, tsla stock, tesla stock, nvda stock) fell and delivery figures declined. The company reported a 16% drop in vehicle deliveries for the last quarter of 2025, adding to concerns about its market position. Meanwhile, Nvidia’s new autonomous driving platform has intensified competition in the sector.
Tesla delivered 418,227 vehicles in the fourth quarter of 2025, down from the same period in 2024. For the entire year, the company sold around 1.64 million units—an 8–9% decline compared to 2024. The news contributed to a 4.14% drop in Tesla’s share price, closing at $432.96 on Tuesday.
Analysts have adjusted their expectations for Tesla’s stock. President Capital lowered its price target to $517, while New Street Research raised its forecast to $600. The company’s high valuation still depends on its ambitions in autonomous driving, particularly its planned robotaxi service. Nvidia recently unveiled Alpamayo, an open-source autonomous driving platform aimed at traditional automakers. Mercedes-Benz plans to adopt the system by 2026, posing a direct challenge to Tesla’s technology. Elon Musk dismissed Nvidia’s announcement, claiming legacy carmakers lag behind in hardware integration. In other developments, Musk’s AI company xAI secured a $20 billion funding round, with Nvidia participating as a strategic investor. Separately, Tesla director James Murdoch sold 60,000 shares worth $26.7 million on January 2. The latest quarterly report highlighted Nvidia as a growing competitor, while BYD overtook Tesla as the world’s largest electric vehicle manufacturer in 2025.
Tesla’s stock decline and delivery drop reflect broader challenges in the electric vehicle market. Nvidia’s Alpamayo platform and BYD’s rising dominance add pressure to Tesla’s position. The company’s future performance will likely hinge on its progress in autonomous driving and robotaxi development.
