Tesla Shares Slip as Nvidia Enters Autonomous Driving Arena; Musk Promises "Epic" Year Ahead

Tesla (NASDAQ: TSLA) stock ended Wednesday's session down 4.14% at $432.96, reflecting investor anxiety over an increasingly crowded field for self-driving technology. The decline was triggered in part by Nvidia's presentation at the 2026 Consumer Electronics Show, where the chipmaker showcased advanced AI-driven autonomous solutions that directly challenge Tesla's Full Self-Driving (FSD) dominance. Musk, however, dismissed the threat on X, stating he is "not losing any sleep" over Nvidia's advancements and expressing hope for their success.

Beyond the competitive pressure, Tesla is navigating a cooling European market. Recent data for early 2026 indicates a continued decline in registrations across major regions like Germany and the UK, even as the company maintains a record-setting lead in Norway. This follows a second consecutive year of global delivery declines, which saw Tesla lose its title as the world's top electric vehicle seller to China's BYD.

Looking forward, Musk has characterized 2026 as "epic" for the company’s evolution from an automaker into a physical AI powerhouse. Key milestones slated for this year include the launch of the dedicated Cybercab robotaxi in April and the start of production for the Tesla Semi and the Gen 3 Optimus humanoid robot. Tesla is also awaiting critical regulatory approvals for "unsupervised" FSD, which would allow its fleet to operate as autonomous taxis without human monitors.

The company is also leaning into its energy business to offset automotive headwinds. Tesla Energy's Megablock architecture is expected to see rapid deployment in 2026, with the storage segment potentially rivaling the automotive division's growth rate for the first time. Investors remain divided, however, on whether these high-tech promises can sustain Tesla's premium valuation amid weakening core car sales.