China is the world’s largest auto market and a key market for Tesla in its ambition to dominate the global auto industry.
It dominates the headlines worldwide. Be at the center of conversations in business and geopolitical circles around the world. Spark discussions at the intersection of business, politics, and geopolitics.
This is the strategy deployed by Elon Musk, CEO of Tesla (TSLA) – Get a free reportwho has been a global boss for several months.
This strategy could be back in play in the coming days. The tech mogul is planning a visit to China and is looking to meet Premier Li Qiang during this trip, according to Reuters.
After Apple’s Tim Cook
The visit could take place as soon as this April, Reuters reported, citing unnamed sources close to the matter. The head of the Austin, Texas-based electric vehicle maker is reportedly waiting for a response from Li’s staff on his availability to confirm the dates of his visit. Basically, Musk’s next visit to China is a done deal, but the date must be determined according to whether he will be received by Li.
Tesla did not respond to a request for comment.
A likely Musk trip to China would come amid heightened tensions between Washington and Beijing, which have escalated into a kind of tech warfare. Beijing is also trying to attract foreign investors and companies as the Chinese economy tries to revive after years of Covid-19, marred by the lockdown that saw the country cut off from the world.
In recent days, Apple (AAPL) – Get a free reportCEO Tim Cook has been visiting China, where he was received by Li, who became prime minister last month. Li is leading the country’s efforts to convince international companies to continue investing in China.
China is a key market for the iPhone maker, but since the disruptions in supply chains caused by the pandemic, Apple has been trying to diversify its suppliers and is thinking in particular of other Asian countries such as India.
As with Apple, China is also an important market for Tesla. It is its second largest market in terms of sales. The company owns a factory in Shanghai that is important to the electric vehicle maker’s global ambitions.
The plant, which produces its two most popular models, the Model 3 and Model Y, serves the Asian and European markets. Giga Shanghai has a production capacity of more than 750,000 vehicles a year, according to the company.
The Shanghai success also encouraged Musk to include the former head of China operations on the short list of possible successors. Tom Zhu is now the company’s manufacturing leader.
Musk’s latest visit remains memorable
Musk has not visited China for three years. His last visit dates back to the beginning of 2020. At that time, pictures of him dancing on a podium in the Shanghai factory had gone around the world and made him very popular.
Since then, Musk has seen his influence grow. For a time, he became the richest man in the world. He is currently the second richest man in the world, behind French businessman Bernard Arnault, with a net worth valued at $187 billion as of April 1, according to theBloomberg Billionaires Index.
The serial entrepreneur has also become a major voice on the global geopolitical scene, a status he earned by providing Starlink to Ukraine at war with Russia. Starlink is a secure satellite internet access service, developed by SpaceX, another of the billionaire’s companies.
In addition, last October it acquired Twitter, the social network considered the platform where trendsetters and opinion makers meet around the world, for $44 billion. Social media puts Musk, a self-described “free speech absolutist,” in a delicate position, particularly with regard to censorship in China. How he would respond to requests from Beijing to remove content or block certain anti-regime voices is one of the questions many experts are asking.
While it’s unclear what Musk wants to discuss with Li, it’s worth noting that Tesla is still waiting for the green light from Chinese authorities for FSD, or Full Self Driving, its advanced driver assistance system.
The automaker is also experiencing delays in its plans to double its production capacity in Shanghai.
The truth is that a Musk visit to China will be closely followed by the political and business world.
