Tesla stock climbed 3% on reports that Elon Musk will accompany President Donald Trump on an upcoming trip to China.

The move extends a rally that has seen Tesla shares gain over 30% since early April, fueled largely by optimism around the company’s autonomous driving ambitions and its deepening footprint in the Chinese market.

Why China matters more than ever for Tesla

Tesla’s Shanghai Gigafactory is the company’s most productive manufacturing site, responsible for over 50% of its global vehicle output. China is also Tesla’s second-largest market by revenue.

When Musk visited China on April 28, he reportedly secured tentative approval for Tesla’s Full Self-Driving software in the country. That single trip sent Tesla shares soaring 18% to $198.87.

The FSD factor

FSD approval in China involves navigating data security laws, mapping restrictions, and a regulatory apparatus that moves on its own timeline.

Around the same time as his April China visit, Musk reportedly postponed a planned trip to India to focus on Tesla’s China operations.

What this means for investors

Tesla’s 30%-plus gain since early April reflects a fundamental repricing of the company’s autonomous driving potential. Each positive development in China, whether it’s FSD approval, manufacturing expansion, or high-level political engagement, adds another layer to the bull case.

For Tesla specifically, the Shanghai Gigafactory’s outsized role in global production means the company’s fortunes are structurally tied to its Chinese operations in a way that most American automakers are not.

Investors tracking this stock should pay close attention to any concrete outcomes from the trip, particularly around FSD deployment timelines, data localization requirements, and any new manufacturing commitments. The 18% surge from Musk’s April visit set a high bar.