DeepSeek Obliterating $600B from Nvidia Was Child’s Play… Now It’s Coming for Tesla (38% CRASH?)

DeepSeek is about to prove to the world they aren’t a scam or shyster. The AI company that vaporized $600 billion in Nvidia market cap in a single day is now locking onto Tesla. And this time, it’s teaming up with China’s largest EV maker, BYD, to do it.

If you thought the Nvidia incident was wild, then get ready… because this one’s going to get Elon’s army going crazy on Twitter.

For those who missed the first act, DeepSeek came out of nowhere, announced AI tech that allegedly doubles as OpenAI’s ChatGPT for pennies on the dollar, and then proceeded to wipe out 20% of Nvidia’s stock price like it was a bug splat on a windshield. That move had conspiracy theorists working overtime… some claiming China did it just to short Nvidia and cash in on the fear (guilty as charged).

Now, they’re moving on from silicon to steering wheels, partnering with BYD… the one automaker that actually keeps Musk up at night. BYD already outsells Tesla in China, and now, with DeepSeek’s cheap AI magic, they’re rolling out self-driving tech that works across their entire lineup… including budget EVs priced under $10,000 (must be super cheaply made vehicles).

BYD has been cautious about self-driving tech. Until now. That’s where “God’s Eye” comes in, their new ADAS (Advanced Driver Assistance System) that uses cloud computing, AI, and sensors to make their vehicles smarter. Basically copying Tesla’s autopilot, just like they copied ChatGPT for only $5.6 million (which is what OpenAI spends in about a week). And in a country where Tesla still can’t get full self-driving approved, that’s a big deal.

Elon himself admitted in Tesla’s Q1 earnings call that regulatory issues in China have left them stuck in a “quandary” (interesting word choice). On one hand, China won’t let Tesla export training data for AI development. On the other, the U.S. government won’t let them train AI models in China.

Investors aren’t ignoring this story. BYD’s stock hit a record high after announcing the DeepSeek partnership, soaring over 4% and adding to its 21% surge last week in anticipation of the announcement. On the other hand, Tesla continues to fall (down 14% in just the last 5 days).

The thing is, Tesla has bet its future on self-driving tech. It’s the core of its robotaxi business plan, and Musk has long hyped “Full Self-Driving” as Tesla’s biggest moneymaker. But if a Chinese rival can bring cheaper, smarter, AI-powered autonomy to the masses before Tesla even gets FSD approved in China… that moneymaker will be irrelevant.

With Tesla currently trading at $333 per share, a $90 billion hit to its market cap from BYD’s self-driving push would bring its valuation down to $660 billion. That translates to a stock price drop to around $206 per share… a 38% decline from current levels.

So, if DeepSeek and BYD keep eating Tesla’s lunch while Elon struggles with regulatory red tape, a sub-$210 Tesla stock could be in the cards sooner than later.

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Stock.News has positions in Tesla.