Elon Musk flew to China with President Donald Trump this week, but the trip did not give Tesla investors the boost they wanted. On Friday, Tesla shares (TSLA) fell 1.9% in early trading to reach $434.72. Even though the stock was on a three-week winning streak, the lack of a new trade deal is causing some immediate worry on Wall Street.
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Trump and Xi Fail to Sign Trade Deals
The meeting between President Donald Trump and President Xi Jinping finished without any big news for American businesses. People were hoping for a major breakthrough, but the event ended “without material agreements” on trade or new investments. Since Musk was a part of the official group that joined the President, the lack of a deal hit the stock price hard as the market opened on Friday. This news stopped the momentum that had been building over the last month.
Elon Musk Wanted to Sell Tesla’s FSD Software in China
A major goal for Tesla is getting the green light to sell its Full Self-Driving software in China. If the government allows it, the company would gain access to the largest electric vehicle market in the world. This is a big deal because more people are signing up for the service every month. In April, Tesla “reported 1.3 million Full Self-Driving subscriptions,” which is a huge jump from the numbers they saw last year.
While TSLA stock has been flat for most of 2026, fans are waiting for new AI products like the Optimus robot to drive future growth. Investors also want to see more of the company’s taxi service on the road. Currently, the company operates cars in four cities for its robo-taxi program. If these services expand quickly, it could help the stock break out of its current rut and reach new highs.
Is Tesla Stock a Hold or a Sell?
Analysts remain cautiously optimistic on Tesla’s long-term outlook. On TipRanks, TSLA has a Moderate Buy consensus rating based on 12 Buys, 12 Holds, and five Sell ratings. The average 12-month Tesla price target of $403.86 implies 8.9% downside risk from current levels.
