Tesla Stock Wobbles as China Self-Driving Talks Heat Up Again

This article first appeared on GuruFocus.

Tesla traded unevenly on Thursday as investors kept focus on China and the company’s push into self-driving software.

The chatter centers on whether Tesla CEO Elon Musk’s visit with President Donald Trump could help advance approval for Tesla’s Full Self-Driving system in China, according to a Thursday Barron’s report.

Tesla’s FSD software is a driver-assistance system that still requires supervision, but it also underpins the company’s robotaxi plans. Tesla has already started a robotaxi service in Austin, Texas, and now operates in four U.S. cities, which has made any China progress a possible new revenue lever for Tesla.

Tesla is also preparing for a heavy spending year. The company expects capital expenditure to reach about $25 billion in 2026, up from less than $9 billion in 2025, while UBS analyst Joseph Spak said the company’s physical AI bets may take time to pay off.

UBS keeps a Hold rating with a $364 target, while FactSet data cited in the report showed 45% of analysts rate Tesla a Buy and the average target sits near $400.