Elon Musk, the CEO of Tesla, recently visited China to discuss the rollout of the company’s full self-driving software (FSD) and permission to transfer data overseas. This visit comes just a week after Musk had to delay a planned meeting with India’s Prime Minister. Tesla had already reached an agreement with Chinese authorities in 2018 to build a plant in Shanghai, which opened in 2019. However, the FSD has not been made available in the Chinese market yet.
During his visit, Musk reportedly met with China’s premier, Li Qiang, and Ren Hongbin, who heads the China Council for the Promotion of International Trade. Musk confirmed the meeting with Premier Li Qiang in a post on social media platform X, stating that they have known each other for many years. Chinese state media reported that Premier Li promised to create a better business environment for foreign companies and expand market access.
Attracting foreign investment has become a crucial goal for the ruling Chinese Communist Party (CCP) amidst economic turmoil. However, skeptics, including the U.S. ambassador to China, Nicholas Burns, have expressed doubts about the CCP’s goal due to conflicting policies and internal battles. The recent counter-espionage law implemented by China has also raised concerns among investors.
During his visit, Musk also met with Ren Hongbin, the organizer of the Beijing auto show. Tesla did not have a booth at the auto show and last attended in 2021. Musk expressed his support for electric vehicles in China in a video posted by state media, stating that all cars will be electric in the future.
This surprise trip to China comes shortly after Musk canceled a meeting with Indian Prime Minister Narendra Modi, citing Tesla’s heavy obligations as the reason. Tesla has been striving to get its FSD systems approved for new markets, but it has faced challenges. In the past, its vehicles were banned from China’s military compounds due to the cameras used for its FSD systems. However, advanced driver assistance systems (ADAS) are becoming increasingly common in China’s electric vehicle market, with local manufacturers like Huawei Technologies and Xiaomi Corp. already utilizing similar technology.
Musk reiterated Tesla’s commitment to getting its FSD systems to customers worldwide, including in China. During Tesla’s recent earnings call, he expressed the company’s intention to release the system as a supervised autonomy system in any market that grants regulatory approval. Tesla is determined to expand its presence in China and continue its efforts to revolutionize the automotive industry with its cutting-edge technology.
Elon Musk’s visit to China highlights the importance of the Chinese market for Tesla and signifies the company’s determination to overcome regulatory hurdles and expand its operations. As electric vehicles gain traction in China, Tesla aims to be at the forefront of this revolution by providing advanced self-driving technology. With ongoing discussions with Chinese government officials and a commitment to regulatory compliance, Tesla is poised to make significant strides in the Chinese market and continue its mission of accelerating the world’s transition to sustainable transportation.
