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Tesla May Get Caught Up in U.S.-China Trade Tensions. It's Not Good for the Stock. - Barron's

1. Tesla's full self-driving approval in China faces indefinite delays. 2. China may use Tesla's approval as leverage in U.S.-China trade talks. 3. 11% of the stock dropped since the beginning of 2025 amid trade tensions.

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FAQ

Why Bearish?

Trade tensions negatively affect TSLA's market access and approval processes. Past incidents show how tariffs can severely impact car sales.

How important is it?

Delays in approval can significantly affect TSLA's growth and revenue expectations in China.

Why Short Term?

Immediate negotiations can influence trade terms quickly. Similar situations have led to rapid changes in stock pricing.

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