TLDR
- Tesla stock fell 1.9% in premarket Friday to $434.72 after the Trump-Xi summit ended without trade deals
- Elon Musk joined Trump on the China trip as part of the official U.S. business delegation
- Investors had been betting on Chinese approval of Tesla’s Full Self-Driving (FSD) software — it didn’t come
- Tesla reported 1.3 million FSD subscriptions in Q1 2026, up from 850,000 a year ago
- TSLA is roughly flat for 2026, down about 1% year to date heading into Friday
Tesla (TSLA) stock slipped 1.9% in premarket trading Friday, hitting $434.72, as Wall Street reacted to the end of President Donald Trump’s high-profile visit to China.
The summit between Trump and Chinese President Xi Jinping wrapped up without any new trade agreements or investment deals. That disappointed investors who had been watching the trip closely for signs of progress.
CEO Elon Musk was part of the U.S. business delegation that joined Trump in China. His presence added to speculation that something concrete — particularly around Tesla’s software ambitions in the country — might come out of the visit.
BREAKING: President Trump provides an update on his 48-hour visit to China for the US-China summit with 15+ US public company CEOs.
Details include:
1. Tariffs were NOT discussed with China's President Xi, Trump says they were "not brought up"
2. Trump says he made "no…
— The Kobeissi Letter (@KobeissiLetter) May 15, 2026
It didn’t.
The biggest prize on Tesla’s China wishlist is government approval to sell its Full Self-Driving software there. China is the world’s largest EV market, and Tesla generated more than 20% of its 2025 revenue there.
FSD Subscriptions Are Growing — But China Remains Locked Out
FSD is already a meaningful revenue driver in the U.S., where it costs $99 a month. Tesla ended Q1 2026 with 1.3 million FSD subscribers, up from 850,000 a year earlier. Getting that product into China would open a sizable new income stream.
No timeline for Chinese FSD approval has been confirmed. Tesla did not respond to requests for comment on the matter.
Despite Friday’s drop, Tesla had a decent week going in. The stock was up 3.5% for the week coming into Friday, after gaining 9.6% the previous week. It had also snapped an eight-week losing streak back in mid-April.
Still, the bigger picture is flat. TSLA is down roughly 1% year to date as of Friday.
Investors Are Still Waiting on Optimus and Robotaxis
Beyond FSD in China, investors are keeping tabs on a few other catalysts. One is the third generation of Tesla’s Optimus humanoid robot. Another is the expansion of its robotaxi service, which launched in Austin, Texas in June and now runs in four U.S. cities.
Neither of those moved the needle this week either.
On analyst sentiment, TSLA carries a Moderate Buy consensus on TipRanks, based on 12 Buys, 12 Holds, and 5 Sells. The average 12-month price target sits at $403.86 — about 8.9% below where the stock was trading Friday morning.
Tesla stock was down 0.44% as of the latest check.
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