Shares of Tesla Inc. [NASDAQ: TSLA] fell 3.73% on Friday, May 15, dropping to approximately $428.72 according to Google Finance data, as the stock reacted to the dual pressure of the Trump-Xi Beijing summit producing no breakthrough on China’s Full Self-Driving software approval and a sharp rise in long-term Treasury yields that hit growth stocks broadly.

The 30-year Treasury yield crossed 5% on Friday, a level that raises the discount rate applied to long-duration growth assets and created pressure across the technology sector even as broader indices initially held up.

Tesla’s decline came after three consecutive weeks of gains totalling approximately 13% combined, meaning the 3.73% pullback reversed only a portion of the recent run rather than signalling a fundamental breakdown in the stock’s recovery from its spring lows.

CEO Elon Musk had joined President Donald Trump’s business delegation to Beijing between May 13 and May 15, with market participants watching closely for any signal that Chinese regulators might accelerate review of Tesla’s Full Self-Driving feature, which currently lacks the broad approval required to commercially deploy it across the country.

Reuters reported that major US business leaders, including Musk, wrapped up the summit with “little clarity” on concrete results, confirming investor fears that Musk’s diplomatic visibility had not translated into the regulatory signal the stock needed to sustain its rally.

Tesla reported 1.3 million FSD subscribers globally at the end of Q1 2026, up from 850,000 a year earlier, a meaningful and growing revenue stream that management has identified as the product most likely to transform the company’s long-term earnings profile if China approval is secured.

Musk had originally suggested February or early spring for Chinese FSD approval, a deadline that passed without resolution, before management pushed the target to Q3 2026 on the most recent earnings call, adding to investor fatigue around the timeline.

Technically, the MACD at 9.58 generated a buy signal and the RSI at 69.02 sat in neutral territory, while the Williams Percentage R at minus 11.30 flashed an oversold condition, suggesting the technical picture does not fully support the fundamental selling pressure but that short-term momentum remained challenged.

The Wall Street consensus on Tesla sits at Moderate Buy with a 12-month average price target of approximately $403.86, a level the stock had been trading well above before Friday’s decline, and Australian class action legal scrutiny regarding phantom braking and autonomous driving capability claims added a separate negative headline to the session.