Tesla Inc ( TSLA ) shares are trading lower Tuesday, pulling back after rallying more than 15% on Monday. Here’s a look at what’s going on.

What Happened: Tesla shares clocked their best day since March 2021 on Monday after the company made progress on its rollout of its full self-driving technology in China.

Tesla CEO Elon Musk made a surprise visit to China over the weekend. The EV maker on Sunday announced that Chinese authorities removed restrictions on Tesla vehicles after the company passed data security requirements in China. Tesla is expected to partner with Baidu for mapping and navigation capabilities in the country.

“Honored to meet with Premier Li Qiang. We have known each other now for many years, since early Shanghai days,” Musk said in an X post over the weekend.

Wedbush analyst Dan Ives called the announcement a “watershed moment” for Tesla.

"Musk winning FSD approval in the key China market is a watershed moment for the Tesla story in our view. This news will be a major focus from investors this morning as it shows how close the FSD vision in China is to becoming a reality for Tesla,” Ives said.

The news comes less than a week after Tesla shares surged higher in the wake of the company’s first-quarter results.

Despite missing analyst estimates on the top and bottom lines, Tesla shares got a lift from the company's accelerated timeline for the launch of new models and talk about the development of a next-gen vehicle. Musk also downplayed the quarter and reiterated his vision for the future of Tesla around AI, full self-driving and robotaxis.

“If somebody doesn’t believe Tesla’s going to solve autonomy, I think they should not be an investor in the company,” Musk said on the call. "We will, and we are."

See Also: Goldman Sachs Tempers Investor Excitement On Tesla Self-Driving Tech In China: ‘Not Yet An Eyes-Off, Unsupervised Product’

Is TSLA A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. Tesla has reported average annual revenue growth of 39.9% over the past five years.

It's also important to pay attention to valuation when deciding whether to buy a stock. Tesla has a forward P/E ratio of 77.52. This means investors are paying $77.52 for each dollar of expected earnings in the future. The average forward P/E ratio of Tesla's peers is 13.19.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

TSLA Price Action: Tesla shares were down 4.84% at $184.65 at the time of publication, according to Benzinga Pro.