Just a week after delaying his trip to India due to high duties on electric vehicles, Tesla CEO Elon Musk made an unexpected visit to China.
The purpose of his visit? Reportedly, Musk is in China to discuss Tesla’s Full Self-Driving (FSD) software. China, as Tesla’s second-largest market, holds significant potential for the deployment of this technology.
Confirming his visit on his social media platform X, Musk mentioned meeting with Chinese Premier Li Qiang. He reminisced, “We have known each other now for many years, since early Shanghai days.” It’s worth noting that Tesla’s first gigafactory outside the U.S. was established in Shanghai back in 2019.
In addition to FSD discussions, Musk is also exploring agreements on data sharing in China. The aim is to utilize this data to enhance Tesla’s self-driving software.
Musk’s visit comes as China’s homegrown EVs are dominating
While China stands as Tesla’s second-largest market beyond the U.S., the electric car giant is facing stiff competition in the region.
Tesla’s rival, BYD, reported sales of 626,263 new-energy vehicles in March, marking a 13% increase from the previous year. After a dip in January and February, BYD saw a significant 46% surge in sales.
In contrast, Tesla delivered only 386,810 electric vehicles in the first quarter of 2024, significantly below Wall Street’s expectations. This disappointing performance led to a sharp decline in Tesla’s stock value, rounding off a challenging quarter marked by controversies and heightened competition in overseas markets.
