Tesla, Nvidia Stocks in Focus Before Trump-Xi Meeting

Tesla and Nvidia stocks enter the week with U.S.-China policy back in focus. President Donald Trump is scheduled to host Chinese President Xi Jinping at the White House on Sept. 24.

Trade, artificial intelligence, Chinese investment and semiconductor controls are expected to feature in the talks. Tesla Chief Executive Officer Elon Musk and Nvidia Chief Executive Officer Jensen Huang are among executives invited to the state dinner.

Tesla Stock Faces Chinese Automaker Policy Uncertainty

Elon Musk will be one of the senior US executives who will be in Washington when Trump hosts Xi for dinner. This meeting comes a few days after Trump said that he would support Chinese automakers setting plants in the United States.

Trump believes that these companies would help to create jobs in the US. Also, it would be a sign that his tariffs against China are working. Under Trump, Chinese EV makers must pay a 100% tariff for all vehicles they ship to the United States. That move has helped to prevent these firms from entering the country.

American automakers have asked the Trump administration to keep Chinese automakers out of the US. They argue that these companies will continue relying on Beijing’s subsidies, which will help them to undercut them.

They also argue that the entry of Chinese vehicles will affect their businesses despite spending billions of dollars investing in the United States. As a result, some concerns increased competition may help to bankrupt some American companies.

Tesla would be at risk if Chinese companies were allowed in the US. That’s because firms like BYD, Nio, and Xpeng make highly attractive electric vehicles that have gained market share in China and other countries.

As such, the meeting’s outcome may have an impact on Tesla stock. Signs that Trump will allow this manufacturing will drag it lower this week.

Another potential story to watch is the rumor that Tesla was considering spinning off its Chinese business. Such a move would make it easier for Elon Musk to merge Tesla with SpaceX.

The meeting comes at a time when the Tesla stock has found substantial resistance at the 200-day Exponential Moving Average (EMA).

Nvidia Stock in Focus Amid China Chip Sales

Nvidia stock will also be in the spotlight this week because of the Trump-Xi meeting. Like Elon Musk, Jensen Huang will be one of the top attendees to the dinner in Washington.

Huang has a lot at stake because his company’s business in China remains under pressure. The US has barred Nvidia from selling its most advanced chips. And last year, the Trump administration barred it from selling its H200 chips, which are usually less advanced.

The two sides made some progress on allowing Nvidia to sell its H200 chips to Chinese clients during the last meeting. Since then, the company has delivered a limited number of chips to some Chinese firms.

Nvidia stock will likely react positively if the two sides agree to boost chip shipments to China. China is the second-biggest player in the AI industry after the US, and the company believes that it can make over $50 billion a year.

The meeting comes at a time when NVDA stock has rebounded and filled the fair-value gap that formed on September 14. It has now retested the lower side of the risky rising wedge pattern. This pattern consists of two ascending, converging trendlines, and a break-and-retest pattern typically confirms the bearish outlook.

Therefore, there is a risk that Nvidia shares will retreat this week. If this happens, it may drop to the key support level of $210.

This article is for informational purposes only and does not constitute financial or investment advice. Stock investments involve risk, and past performance does not guarantee future results.