By Al Root

Tesla CEO Elon Musk is expected to join President Donald Trump on the latter's trip to China, The Wall Street Journal reported.

That will generate investor buzz about what it could mean for the electric-vehicle maker's shares. It's likely to lead to positive headlines, and many will involve AI. Still, Tesla stock started Tuesday weak, taking a pause after an epic run.

Tesla shares dropped 2.6% on Tuesday, closing at $433.45, while the S&P 500 fell 0.2% and the Dow Jones Industrial Average gained 0.1% .

Coming into Tuesday trading, shares have gained more than 14% over the past four trading days, leaving shares down just 1% this year.

Key to the rally was Chinese-related AI speculation. Tweets have suggested Tesla is close to rolling out its AI-trained Full Self-Driving, or FSD, driver-assistance technology in China. FSD has more than a million subscribers in the U.S. and can handle most driving most of the time. The system still requires supervision by Tesla drivers.

Tesla didn't respond to requests for comment about FSD in China or Musk's travel itinerary.

A Chinese release would open a new revenue stream in the world's largest market for electric vehicles. Tesla generated more than 20% of its 2025 revenue in China.

Americans can pay $99 a month for FSD. In April, Tesla reported 1.3 million FSD subscriptions at the end of the first quarter, up from about 850,000 a year ago.

A Chinese FSD launch also represents AI progress at Tesla, which has pinned its future on AI applications such as FSD, robo-taxis, and humanoid robots.

Tesla launched a robo-taxi service in Austin, Texas, in June. It's expanded to four cities, including test markets. Tesla is also expected to unveil the third generation of its AI-trained humanoid robot, Optimus, later this year.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 12, 2026 16:19 ET (20:19 GMT)

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