Global Courant 2023-05-29 17:55:00
HONG KONG — Tesla CEO Elon Musk is expected to visit China this week in what would be his first trip to the country in three years.
According to two sources, Musk is expected to meet senior Chinese officials and visit Tesla’s factory in Shanghai.
It wasn’t immediately clear who Mr. Musk would meet and what they would discuss.
Reuters reported in March that Mr Musk was planning a trip to China and sought a meeting with Chinese Premier Li Qiang as early as April, with the exact timing subject to Mr Li’s availability.
China is Tesla’s second-largest market after the United States, and its Shanghai factory is the electric car manufacturer’s largest manufacturing center.
Musk also owns the social media platform Twitter, which is banned in China, although some people access it through virtual private networks.
The trip would be Musk’s first trip in China since he rocked the internet in early 2020 by dancing onstage at an event at the Tesla factory in Shanghai.
It would also come at a time when Tesla is grappling with multiple issues, including increasing competition from Chinese automakers who are exporting their Chinese-made electric vehicles as demand in the world’s largest auto market weakens.
Tesla has not yet provided an update on its plans to increase production at its Shanghai plant by 450,000 vehicles per year, though it said in April it would build a factory in Shanghai to produce Megapack energy storage products.
The company has submitted plans to local authorities to expand powertrain production capacity at its Shanghai plant to 1.75 million units per year.
China’s state planner is grappling with excess capacity in its 100-plus player auto industry and warns against approving new production capacity.
Musk told CNBC earlier in May that “there are some limitations on our ability to expand in China.”
He added: “It’s not a question of demand.”
In the same interview, Musk said tensions between the United States and China “should be a concern for everyone.”
Tesla is building a factory in Mexico that is expected to produce a lower-cost electric car on its next-generation platform. REUTERS
