Tesla CEO Elon Musk recently met with Chinese Prime Minister Li Qiang in Beijing, surprising many in the industry. The meeting took place during the Beijing Motor Show, where Chinese manufacturers are showcasing their latest electric vehicle models. This meeting signals a new phase of dialogue and potential collaboration between Tesla and China, the world’s second largest economy.
China is home to Tesla’s largest manufacturing plant outside the United States, located in Shanghai where half of the company’s vehicles are produced. Despite this, Tesla has faced challenges in the Chinese market due to fierce competition from local brands. In the first quarter of this year, Tesla reported a significant drop in earnings compared to the previous year.
Musk’s visit to China came shortly after canceling a planned trip to India to meet with Prime Minister Narendra Modi due to his busy schedule with Tesla. Recently, Tesla announced layoffs of over 10% of its global workforce in order to streamline operations and focus on future growth opportunities.
During Musk’s visit, Tesla reached a deal with Chinese tech giant Baidu to use its mapping license for data collection on Chinese public roads, a move that will help with the rollout of self-driving software in China. Prime Minister Li emphasized the importance of collaboration between the United States and China, citing Tesla’s operations in the country as a successful example of mutual cooperation.
Li expressed hope for “win-win” cooperation with the United States and assured that China will continue to support foreign-funded firms in its market. The meeting between Musk and Li signifies a positive step towards strengthening ties between Tesla and China, and fostering innovation in the electric vehicle industry.