Key Takeaways
- Shares of Tesla dropped 1.9% during premarket hours Friday, trading at $434.72 following the conclusion of the Trump-Xi summit without any trade agreements
- CEO Elon Musk accompanied Trump to China as a member of the official American business delegation
- Market participants had anticipated potential Chinese regulatory approval for Tesla’s Full Self-Driving technology — no such announcement materialized
- The electric vehicle maker disclosed 1.3 million FSD subscribers in Q1 2026, representing growth from 850,000 subscribers one year prior
- TSLA shares are essentially unchanged for 2026, down approximately 1% year to date as of Friday morning
Shares of Tesla (TSLA) declined 1.9% during Friday’s premarket session, falling to $434.72, as investors processed the conclusion of President Donald Trump’s closely-watched diplomatic visit to China.
The highly anticipated meeting between Trump and Chinese President Xi Jinping concluded without producing any new trade pacts or investment commitments. The outcome left market participants disappointed, many of whom had been closely monitoring the visit for potential breakthroughs.
Chief Executive Elon Musk traveled to China as part of the American business delegation accompanying Trump. Musk’s inclusion in the delegation fueled market speculation that meaningful developments — especially concerning Tesla’s software opportunities in the Chinese market — could emerge from the diplomatic engagement.
Those expectations went unfulfilled.
The most coveted objective on Tesla’s Chinese agenda is securing regulatory permission to market its Full Self-Driving technology throughout the country. China represents the planet’s largest electric vehicle marketplace, and Tesla derived over 20% of its 2025 total revenue from Chinese operations.
Full Self-Driving Subscriber Base Expands — But Chinese Market Access Remains Elusive
FSD has evolved into a substantial revenue contributor in the United States, where the monthly subscription costs $99. Tesla concluded the first quarter of 2026 with 1.3 million FSD subscribers, marking an increase from 850,000 subscribers recorded a year earlier. Securing market access in China would unlock a substantial additional revenue channel.
No official timeline for Chinese regulatory clearance of FSD has been established. Tesla declined to provide comment when contacted regarding the matter.
Despite Friday’s premarket decline, Tesla had been experiencing positive momentum heading into the session. The stock had climbed 3.5% for the week prior to Friday, following a 9.6% gain the week before. The company also broke an eight-week downward streak in mid-April.
However, the broader performance picture remains lackluster. TSLA shares are down roughly 1% year to date entering Friday’s trading.
Market Watchers Monitor Optimus and Robotaxi Developments
Beyond securing FSD approval in China, market participants are tracking several additional potential catalysts. One involves the third-generation version of Tesla’s Optimus humanoid robot platform. Another centers on the expansion of its autonomous taxi service, which debuted in Austin, Texas last June and currently operates across four American cities.
Neither development generated significant market momentum during the week.
Regarding Wall Street sentiment, TSLA holds a Moderate Buy consensus rating on TipRanks, derived from 12 Buy ratings, 12 Hold ratings, and 5 Sell ratings. The consensus 12-month price target stands at $403.86 — representing approximately 8.9% downside from Friday morning’s trading level.
Tesla stock was trading down 0.44% as of the most recent update.
