OREANDA-NEWS  During trading on Tuesday, February 11, on the NASDAQ stock exchange, shares of the American electric car manufacturer Tesla fell by 6.34 percent, to $ 328.5, amid news about the introduction of DeepSeek artificial intelligence by its main Chinese competitor BYD. This is reported by CNBC.

Investors fear that Elon Musk's company is lagging behind its competitors. The value of Tesla's securities has been falling for five consecutive trading sessions, during which time they have lost almost 17 percent, which reduced the company's capitalization by more than 200 billion.

The cooperation between BYD and DeepSeek is expressed in the fact that the manufacturer will equip at least 21 car models with partially automated driving systems with automatic parking and highway navigation functions. Such a serious competitive approach calls into question the profitability of Tesla, even with the improvement of its systems.

Separately, market participants are worried about Musk's parallel activities. His work at the U.S. government's Department of Efficiency (DOGE) is time-consuming, and his desire to buy OpenAI, the developer of the chatbot Chat-GPT, speaks to a wide range of issues of interest to the businessman, which is why his own effectiveness as the head of Tesla may suffer.

At the same time, the automaker's reporting is not encouraging. Sales of electric vehicles are falling in China and Europe, while in Germany they have fallen to their lowest level since 2021. Tesla's profit halved in 2024. Things looked particularly bad in the fourth quarter.

Meanwhile, Musk himself, in a conversation with investors, repeats the same promises for the release of a cheap car and the imminent appearance of a robotaxi, as he did a year ago. During this time, there has been no evidence that the company has made progress on both issues, and past promises have not been fulfilled.