Tesla and Nvidia stocks enter the week with U.S.-China policy back in focus ahead of a scheduled meeting between President Donald Trump and Chinese President Xi Jinping. Trump is set to host Xi at the White House on Sept. 24, with trade, artificial intelligence, Chinese investment and semiconductor controls expected to feature prominently in the talks.

Tesla Chief Executive Officer Elon Musk and Nvidia Chief Executive Officer Jensen Huang are among the executives invited to the state dinner, placing both companies close to the center of the negotiations. With both chief executives at the table, the meeting doubles as a checkpoint on two of the most commercially sensitive files between Washington and Beijing: electric-vehicle market access and semiconductor export rules.

Key Points

• Tesla and Nvidia stocks face policy exposure before the Sept. 24 Trump-Xi meeting.
• Tesla investors are watching U.S. policy toward Chinese automakers and domestic manufacturing.
• Nvidia investors are focused on China chip access as H200 shipments remain limited.

Tesla Stock Faces Chinese Automaker Policy Uncertainty

Musk will be among the senior U.S. executives in Washington when Trump hosts Xi for dinner. The meeting comes just days after Trump said he would support Chinese automakers building plants in the United States, arguing that such companies would help create American jobs and would signal that his tariffs against China are working.

Under Trump, Chinese electric-vehicle makers must pay a 100% tariff on all vehicles they ship to the United States, a measure that has so far kept those firms from entering the market.

American automakers have urged the Trump administration to keep Chinese automakers out of the U.S. They argue that those companies will continue relying on Beijing's subsidies, allowing them to undercut American rivals, and that their entry would damage U.S. businesses despite the billions of dollars domestic manufacturers have invested in the United States. Some in the industry fear increased competition could bankrupt a number of American companies.

Tesla would be exposed if Chinese companies were allowed into the U.S. market, as firms such as BYD, Nio and Xpeng build highly attractive electric vehicles that have gained market share in China and other countries. The outcome of the meeting may therefore influence Tesla stock, and signs that Trump would allow such manufacturing would likely drag the shares lower this week. The concrete signal to watch is whether Trump's recent comments harden into policy, since any change to the 100% tariff is the mechanism through which Chinese EV competition could actually reach American buyers.

Another storyline to watch is the rumor that Tesla was considering spinning off its Chinese business. Such a move would make it easier for Musk to merge Tesla with SpaceX. The meeting comes at a time when Tesla stock has found substantial resistance at its 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 Musk, Huang is among the top attendees at the dinner in Washington, and he has much at stake because his company's business in China remains under pressure.

The U.S. has barred Nvidia from selling its most advanced chips, and last year the Trump administration barred it from selling its H200 chips, which are typically less advanced. The two sides made some progress on allowing Nvidia to sell H200 chips to Chinese clients during their last meeting, and since then the company has delivered a limited number of chips to some Chinese firms.

Nvidia stock would 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 U.S., and Nvidia believes it can generate more than $50 billion a year in that market. That revenue currently sits behind export restrictions, which is why each round of U.S.-China talks carries direct commercial weight for the chipmaker, and the marker to watch from the White House meeting is whether H200 approvals expand beyond the limited deliveries made so far.

The meeting comes at a time when NVDA stock has rebounded and filled the fair-value gap that formed on September 14. The shares have now retested the lower side of a rising wedge pattern, a formation made up of two ascending, converging trendlines in which a break-and-retest typically confirms a bearish outlook. As a result, there is a risk that Nvidia shares retreat this week, and a pullback could take them 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.

This article first appeared on The Market Periodical.