Tesla (TSLA) shares fell roughly 4% in early trading on Monday as investors assessed a new competitive threat from OpenAI.
The AI giant’s latest robotics ambitions could place it on a collision course with Elon Musk’s long-term vision for humanoid robots.
The decline came even as broader US markets were relatively stable.
The S&P 500 and Nasdaq Composite traded around the flatline, while the Dow Jones Industrial Average fell 231 points, or 0.5%.
Technology stocks received some support from Nvidia following the launch of its new AI-focused PC chip.
The pressure on Tesla followed comments from OpenAI Chief Executive Officer Sam Altman, who announced on Sunday that the company is recruiting talent to accelerate development of its robotics efforts.
“AI should be able to help people in the physical world,” Altman wrote on social media platform X.
“In the short term, we are focused on robots to support skilled workers to build our future infrastructure; in the long term, we imagine everyone having a personal robot doing anything they need.”
The remarks signal OpenAI’s intention to enter a market that Tesla has increasingly identified as a core pillar of its future growth strategy.
Robotics emerging as new battleground
Tesla’s investment narrative has become increasingly tied to artificial intelligence initiatives, including Full Self-Driving software, robotaxi services, and its Optimus humanoid robot program.
The company recently halted production of its Model S and Model X vehicles to convert manufacturing capacity at its Fremont, California, facility, for humanoid robot production.
Investors are also awaiting details on the third generation of Optimus, which is expected to be unveiled in the coming weeks.
While the humanoid robotics market remains in its infancy, OpenAI’s entry introduces another well-funded competitor into a space Tesla hopes will eventually become a major business.
The rivalry also adds another chapter to the longstanding tensions between Musk and Altman.
Musk previously sued OpenAI and Altman over the company’s transition from a nonprofit organization to a for-profit structure.
The legal challenge was unsuccessful after a jury rejected Musk’s claims.
Analysts remain optimistic on Optimus
Despite concerns about increasing competition, Cantor Fitzgerald reiterated its Overweight rating and $510 price target on Tesla shares on Monday.
The firm highlighted Tesla’s progress in building manufacturing infrastructure for Optimus.
According to Cantor Fitzgerald, Tesla disclosed during the first quarter that its first-generation Optimus production line is being installed in California.
The facility is expected to replace former Model S and Model X production lines and ultimately support an annual production capacity of up to one million robots.
Tesla is also preparing a second-generation production facility at Gigafactory Texas, where management is targeting a long-term annual capacity of 10 million robots.
Cantor Fitzgerald expects production of Optimus Gen 3 to begin ramping in Fremont during late July or August 2026.
The second manufacturing facility is expected to begin production during the summer of 2027.
The firm forecasts initial Optimus deliveries beginning in the third quarter of 2027.
Early units are expected to be sold primarily to commercial customers at average selling prices near $100,000 before eventually becoming available to consumers at Tesla’s long-term target price of roughly $20,000 per unit.
Cantor Fitzgerald projects Optimus production of 2,500 units in fiscal 2027, rising to 6,000 units in fiscal 2028 and 18,000 units in fiscal 2029.
European sales continue to recover
While investor attention remains focused on Tesla’s AI ambitions, the company also received encouraging news from its core automotive business.
New Tesla registrations increased across several European markets in May, indicating continued recovery in regional demand.
According to data from Mobility Sweden, bilstatistik.dk, ANFAC, OFV, and PFA, Tesla registrations rose 71% year-over-year to 858 vehicles in Sweden, 136% to 1,750 vehicles in Denmark, and 113% to 1,690 vehicles in Spain.
In Norway, registrations increased 29% to 3,345 vehicles, while France recorded one of the strongest gains, with registrations surging 655% to 5,446 vehicles.
The broader European market also remains supportive of electric vehicle adoption.
Registrations of electrified vehicles, including battery-electric, plug-in hybrid, and hybrid models, rose about 21% across Europe and accounted for more than two-thirds of all vehicle registrations in April, according to data from ACEA.
Although Tesla’s automotive business is showing signs of improvement in Europe, investor focus remains centered on whether the company can successfully scale its artificial intelligence initiatives and maintain a leadership position in emerging markets such as autonomous driving and humanoid robotics.
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