Elon Musk, CEO of Tesla, made a surprise visit to Beijing to meet with China’s Premier Li Qiang. This trip coincides with the ongoing Beijing Motor Show, where domestic carmakers are showcasing their electric vehicle (EV) offerings.
Premier Li emphasized China’s openness to foreign firms and expressed hope for continued positive US-China cooperation, citing Tesla’s success in China as a prime example. This aligns with China’s stated goal of expanding market access and strengthening services for foreign businesses.
According to reports, Tesla secured a crucial regulatory hurdle during Musk’s visit. A deal with Baidu, a Chinese tech giant, will allow Tesla to utilize Baidu’s mapping license for data collection on public roads. This paves the way for the potential launch of Tesla’s self-driving software in China.
Musk’s China trip comes after a canceled visit to India due to Tesla’s pressing obligations. Tesla’s Shanghai factory, its largest outside the US, faces growing competition from established Chinese EV brands. Tesla’s recent performance reflects these challenges, with declining sales and a shrinking stock price.
The company recently reported lower profits compared to the previous year and implemented workforce reductions to streamline operations for future growth. While Tesla regained the top EV manufacturer title in Q1 2024, Chinese automaker BYD briefly held the position in late 2023. This visit underscores Tesla’s continued focus on the crucial Chinese market.