Elon Musk's unannounced visit to Beijing included a meeting with Premier Li Qiang, where they discussed Tesla's operations in China. Li praised Tesla's development in China as a successful example of economic and trade cooperation between the US and China. Musk, in turn, expressed gratitude for the meeting and reflected on his longstanding relationship with Li.
Tesla's presence in China dates back to an agreement reached with Chinese authorities in 2018 to establish a plant in Shanghai, marking its first facility outside the United States. Despite being the company's second-largest market globally, Tesla has yet to roll out its Full Self-Driving (FSD) software in China. However, Musk indicated that FSD may soon be available to customers in the country, responding to inquiries on social media platform X.
The visit holds significance for Tesla, with analysts viewing it as a pivotal moment, especially regarding the potential launch of FSD in China. Competing Chinese automakers have been rolling out similar software, heightening the stakes for Tesla in the Chinese market.
One key aspect of the discussion during Musk's visit pertains to data transfer. Tesla has stored all data collected by its Chinese fleet in Shanghai as per regulatory requirements but seeks approval to transfer this data abroad for training autonomous driving algorithms.
The trip comes after Musk canceled a planned visit to India, citing prior commitments. Tesla has faced challenges recently, including a workforce reduction and regulatory scrutiny over vehicle recalls. Despite these challenges, Tesla has sold over 1.7 million cars in China since it entered into the market a decade ago, with the Shanghai factory being its largest globally.
General Motors CEO Mary Barra also made an unannounced visit to the Beijing auto show, underscoring the importance of the Chinese market for global automakers.
Tesla's Vice President in China, Grace Tao, emphasized the importance of autonomous driving technologies for the electric vehicle industry in a commentary published in a state media outlet. She highlighted Tesla's leadership in autonomous driving research and development, leveraging its advanced neural network technology and extensive data collection from vehicles on the road.
Looking ahead, Musk has hinted at introducing new, more affordable models and a "robotaxi" equipped with self-driving technology. Despite recent challenges, Tesla remains a significant player in the global electric vehicle market, with its operations in China playing a crucial role in its growth strategy.
