TSLA Stock Slips Premarket: Musk Joins Trump’s China Trip As FSD Delays Threaten Tesla’s Biggest Factory

• CEO Elon Musk prepares to join U.S. President Donald Trump’s Beijing trip between May 13 and May 15.
• Musk is expected to travel with executives, including Apple CEO Tim Cook, Boeing CEO Kelly Ortberg and BlackRock CEO Larry Fink.
• Tesla sold 25,956 vehicles in China in April, down nearly 10% year over year.

Shares of Tesla, Inc. (TSLA) slipped 2% in premarket trading on Tuesday as CEO Elon Musk prepares to join U.S. President Donald Trump’s Beijing trip, while investors closely watch whether China could finally approve Tesla’s Full Self-Driving (FSD) software after months of delays.

TSLA stock is ripping above its 200-day moving average after jumping nearly 4% to end at $445 on Monday.

Musk Joins Trump’s High-Stakes China Trip

Musk is expected to join a delegation of top U.S. executives accompanying Trump to Beijing this week, including Apple CEO Tim Cook, Boeing CEO Kelly Ortberg, Goldman Sachs CEO David Solomon, BlackRock CEO Larry Fink, Blackstone CEO Stephen Schwarzman, Qualcomm CEO Cristiano Amon and Citigroup CEO Jane Fraser, according to a Bloomberg report. 

Trump is expected to use the trip, scheduled between May 13 and May 15, to pursue major trade and business agreements with China spanning tech, aerospace, semiconductors, finance and supply chains. 

For Tesla investors, the biggest focus remains the delayed FSD approval in China. Musk previously said that Chinese regulators indicated supervised FSD approval could arrive around February or March. However, the timeline passed without authorization, with expectations now shifting toward a possible third-quarter rollout.

Tesla Builds China FSD Infrastructure Push

Tesla has spent years laying the groundwork for broader FSD deployment inside China. The company established a Shanghai data center to localize vehicle data storage, signed a mapping partnership with Baidu and launched a local AI training center aimed at adapting Tesla’s software to Chinese roads and driving behavior.

Tesla currently charges roughly 62,000 yuan ($9,100) for FSD in China, though the software remains heavily restricted pending broader approval. Chinese regulators have also tightened oversight around autonomous-driving terminology, pushing Tesla to rebrand certain FSD features locally as “Intelligent Assisted Driving.” Musk recently said that Tesla’s biggest China limitation was based more on FSD approvals and production constraints than demand itself. “Limiting factor is production output in Shanghai,” Musk said last month. 

Tesla Loses China EV Market Share

Tesla’s China retail business has weakened recently, even as exports out of Shanghai remain strong. The company sold 25,956 vehicles in China in April, down nearly 10% from a year earlier and below March levels. Tesla’s share of China’s total new-energy vehicle market slipped to 3%, its weakest level since November 2025, while its battery-electric vehicle share fell to 4%.

Competition from BYD, Xiaomi and Huawei has intensified as Chinese automakers aggressively bundle advanced driver-assistance systems into lower-cost vehicles without separate software fees. Last month, Ford CEO Jim Farley called BYD the benchmark competitor globally from a manufacturing and cost perspective.

Tesla has also recently adjusted financing offers in China, removing some long-term, low-interest financing options while retaining shorter-duration, zero-interest loans to support domestic demand.

Tesla Shanghai Exports Offset China Weakness

While domestic sales weakened, Tesla’s Shanghai factory continued posting strong export numbers. The company shipped more than 53,000 vehicles overseas in April, one of the strongest export months in the facility's history. Total wholesale deliveries from China reached nearly 79,500 vehicles.

Nearly two-thirds of Shanghai’s April production was exported, helping offset softer local demand. Shanghai is Tesla’s largest global manufacturing hub and a crucial export base serving Europe and other international markets. The facility accounted for 60% of Tesla’s global deliveries during the first quarter of 2026.

How Do Retail Traders Feel About Tesla?

On Stocktwits, retail sentiment for TSLA was ‘bullish’ amid a 913% surge in 24-hour message volumes.

One user said, “Bullish day overall, China update soon hopefully”

Another user said, “It looks like Tesla might be setting up for a sell-the-news scenario. I mean, how does one CEO joining the US talks trip to China, especially with so much uncertainty and other big names like Tim Cook not seeing their stocks rise, justify this type of move? “

So far this year, TSLA stock has lagged several “Magnificent Seven” peers, making it the group’s third-worst performer, with a 1% decline.    

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