The EV maker's investors have to weigh what CEO Elon Musk’s bid to gain control of the ChatGPT creator means for his time and their shares.

Tesla shares can’t stop sliding. The stock sank 6.3% to $328.50 Tuesday and was the day’s worst performer on the Nasdaq 100. It was Tesla’s lowest close since Nov. 15 and its fifth consecutive day of falling.

There is a lot at stake, reminds the investor. TSLA’s valuation north of $1 trillion means that the company is trading at a forward adjusted EPS multiple of greater than 120x. This is significantly more than the 4x median of the auto industry, adds JR, meaning that TSLA’s valuation is likely based on robotaxi excitement.

Investors in Tesla stock see the Elon Musk-led bid for OpenAI as yet another distraction for the EV maker's CEO.

What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 5.2% in the afternoon session after Chinese electric vehicle manufacturer, BYD, unveiled "DiPilot," an assisted driving system (like a smart co-pilot or an extra pair of eyes while driving) that will integrate AI features from DeepSeek (Chinese AI Startup).

Tesla’s (TSLA) stock isn’t looking great, but the bigger picture still does. In the last quarter, Tesla’s fundamentals slipped in key areas,