During an unexpected visit to Beijing amidst speculations about the potential unveiling of Tesla's autonomous driving technology in China's rapidly expanding electric vehicle (EV) market, entrepreneur Elon Musk held discussions with Chinese Premier Li Qiang regarding future expansion strategies for his automotive enterprise.
Premier Li reiterated again that China will continue to open its market to foreign capital-funded enterprises, improve the quality of services for foreign enterprises, and create a favorable environment for doing business with increased support to foreign enterprises of any origin to invest in China fearlessly.
He pointed out that the location of Tesla's presence in China is an example of successful cooperation between China and the United States, adding that China and the US have established equal cooperation on the basis of mutual benefit. He expressed his hope for increased bilateral cooperation within the framework of strategic leadership by both countries.
Musk announced that Tesla's Shanghai Gigafactory, he claimed is the most efficient factory in the world, is already going very well. He said Tesla is ready to expand further cooperation with China to bring more mutual benefits. He also shared his experience at a meeting with Ren Hongbin, president of the China Council for the Promotion of International Trade, on possible future cooperation.
Scheduled to meet senior Chinese officials and reconnect with acquaintances in Beijing, Musk's visit coincided with the 2024 Beijing Auto Show. Despite increasing competition from local EV manufacturers, Tesla has solidified its position in China's premium EV segment, bolstered by its Shanghai operations.
Grace Tao, the Vice President of External Relations in China for Tesla, earlier noted that the "driver of the new energy vehicle market in China is autonomous driving technology." She shared that Tesla is expecting the emergence of new business models such as robotaxis, just like how Musk envisions the future of mobility.
Selling and marketing in China became an attractive business for Tesla in the light of the favorable approach of the Chinese government to Tesla, as opposed to pressure from the US government. The company was even allowed to enter restricted areas, and it even met with senior officials.
Tesla had a good performance in China. Sales figures are strong, and investments such as its future Megapack factory, which is projected to address the rising demand, put Tesla in a good position despite letting go of staff last year in order to maximize efficiency and reduce costs.
Recent comments of a slight decline in sales and a less rosy outlook for growth and presented some concerns about Tesla's future in China. However, Tesla is optimistic, seeing as it is known for innovation and sustainable development.
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