- Tesla‘s Full Self-Driving (FSD) software approval in China is delayed, with expectations shifting to a Q3 rollout after initial hints for February or March.
- CEO Elon Musk is joining a high-level U.S. business delegation, including Apple‘s Tim Cook, on President Donald Trump‘s trip to Beijing from May 13-15.
- Domestic vehicle sales in China fell nearly 10% year-over-year in April, though strong exports from the Shanghai factory partially offset the weakness.
Tesla’s stock dipped in premarket trading Tuesday as CEO Elon Musk prepared to join a pivotal U.S. delegation to China, where a critical approval for its driver-assistance software remains pending. This delay comes despite the company’s extensive preparations and a reported surge in retail investor chatter on platforms like Stocktwits, where sentiment was ‘bullish’ amid a 913% increase in message volume.
Musk is expected to accompany President Donald Trump alongside other top executives, such as Apple CEO Tim Cook and BlackRock CEO Larry Fink, according to a Bloomberg report. The trip, scheduled from May 13 to May 15, aims to pursue major trade agreements across technology and finance sectors. For Tesla, however, the primary investor focus is securing long-awaited regulatory approval for its Full Self-Driving system in the crucial Chinese market.
Tesla has laid significant groundwork for FSD in China, establishing a local data center and forming a mapping partnership with Baidu. However, the software, priced at roughly $9,100, remains restricted as Chinese regulators push for local adaptations and terminology changes. Musk has previously stated the main limitation in China is “production output in Shanghai” rather than demand, highlighting the complex operational landscape.
Consequently, Tesla’s domestic sales in China showed weakness, with just 25,956 vehicles sold in April. This figure represents a nearly 10% annual decline and reduced its market share to just 3% of the new-energy vehicle segment. Intense competition from local rivals like BYD and Xiaomi, which bundle advanced driver-assistance features at lower costs, continues to pressure the automaker.
Meanwhile, Tesla’s Shanghai factory posted robust export numbers, shipping over 53,000 vehicles overseas in April. This strong export performance helped total wholesale deliveries from China reach nearly 79,500 vehicles, demonstrating the facility’s vital role as a global export hub. Nearly two-thirds of the factory’s April production was sent to international markets like Europe.
Some retail traders expressed optimism, with one user commenting, “Bullish day overall, China update soon hopefully.” Another cautioned about a potential “sell-the-news scenario” given the uncertainty. So far in 2026, Tesla stock has underperformed several of its “Magnificent Seven” peers, declining 1%.
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