Elon Musk's surprise visit to Beijing has sparked intrigue as Tesla navigates challenges stemming from a global slowdown in electric car sales and fierce competition from Chinese counterparts.
Musk, the billionaire CEO, met with Premier Li Qiang on Sunday, reportedly to discuss Tesla's ambitions to roll out fully autonomous driving technology in China.
Analysts perceive Musk's visit as a strategic move aimed at securing a "game changer" for Tesla amidst mounting challenges that have already led to a significant drop in the company's share price this year. The meeting follows Tesla's recent report of declining first-quarter sales and profits, reflecting a broader dip in demand for electric vehicles worldwide.
In China, Tesla faces stiff competition from domestic giants like BYD, intensifying a price war in the electric car market. This dynamic was on full display at the annual Beijing auto show, where Chinese rivals showcased a slew of new electric car models.
Despite Tesla's absence from the auto show, the company has pledged to introduce "more affordable" cars next year.
With a major factory in Shanghai, Tesla produces vehicles for both the Chinese market and export, but saw its Chinese market share decline from 10.5% to 6.7% in 2023. Last week, Tesla further reduced prices in China, slashing the cost of the Model 3 and Model Y.
Musk arrived at the meeting with Premier Li in a Tesla Model X and was greeted by Ren Hongbin, a government official overseeing international trade promotion.
While details of the discussion remain undisclosed, footage from China's state broadcaster depicted Premier Li praising Tesla as a "successful example of Sino-American economic and trade cooperation."
Reportedly, Musk is seeking approval to transfer driving data collected by Tesla in China to the US, where the company houses its advanced autonomous driving technology. This move would enable Tesla to enhance its "autopilot" software and potentially deploy the "full self-driving" version in China.
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