Tesla Stock Dives as Musk Joins Trump and Models S and X Are Discontinued

Quick overview

Tesla (TSLA) CEO Elon Musk will be joining U.S. President Donald Trump on a state visit to China as Tesla discontinues two of its classic models, and the company’s stock is down 2.6% in response.

Tesla’s stock price fell late Tuesday as the company announced the end of its Model S and Model X vehicles. Shareholders are also worried that CEO Musk’s visit to China alongside President Trump will be a PR problem for the company.

Musk is joining a number of other executives like Jensen Huang from Nvidia and Tim Cook from Apple as part of a delegation to represent American interests in China. The two countries have struggled over technology tariffs and whether to permit sales of high end AI components to international markets.

Tesla Stock Recovering Wednesday Morning

On Wednesday in premarket trading, Tesla stock climbed 1.07% as technology stocks performed better than they had the day before. The S&P 500 and Nasdaq indices ticked up, led by Nvidia and other influential tech stocks.

Tesla is still in a risky place thanks to the discontinuation of two of its leading models. The Model S and Model X received a special sendoff this week, marking the end of their runs. The company noted back in January that these cars would likely be pulled later in the year. The focus for Tesla’s production facilities has now shifted to Optimus robots, and they are counting on the success of these machines to lead company sales in the near future.

Tesla is still producing new electric vehicles, shipping out Cybertrucks and Model 3’s for the present and planning to release the next generation of the Tesla Roadster sometime soon. The company is facing declining sales for its electric vehicles, but electric car sales are down for all producers across the globe as customer buying habits evolve.

Tesla stock is very elevated right now, up 11% since the beginning of the month. Year to date, however, the company stock is about even with where it started off in January. As frustrating as that may be for long-term shareholders, it does show that the company has done an excellent job of bringing its waning stock price back up recently.

The price of Tesla stock fell to $343 at its lowest point in 2026, which was in early April. Now, with weeks of upward movement, the small pullback Tuesday may be seen as little more than a blip for the bullish trend the stock is experiencing.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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