Important cooperation: Tesla boss visits China

Important cooperation: Tesla boss visits China
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The boss of the car manufacturer Tesla, , arrived in China on Sunday, official television announced. This is his second visit in less than a year to this country which represents the largest market for electric vehicles.

China presents many business interests for Elon Musk. (2020 archives)

imago images/Xinhua

“At the invitation of the China Council for the Promotion of International Trade, Tesla CEO Elon Musk arrived in Beijing this afternoon,” CCTV said. This visit had not been announced in advance.

According to state media, Mr. Musk met with Ren Hongbin, the head of the China Council for the Promotion of International Trade, “to discuss next steps in terms of cooperation and other issues.”

He also spoke with a senior trade official, according to CCTV, which published a photo of him at the Grand Diaoyutai in Beijing, a dependency of the Chinese state. “It is good to see electric vehicles progressing in China,” he said on Sunday, media close to power reported, affirming that “all cars will be electric in the future.”

Controversial personality

China presents many business interests for Elon Musk. His last visit was in June 2023. Tesla, the company specializing in electric vehicles (EV) of which he is the boss, did not confirm to AFP the billionaire’s visit or the route he would follow in China .

Elon Musk is a controversial figure in the Western world, especially since he bought the social network X, formerly Twitter. On the other hand, he is admired in China, where his Tesla cars are appreciated by the urban middle classes.

His visit comes as a price war rages between companies in the ultra-competitive electric vehicle sector, in which China is well positioned. It also occurs during the gigantic Beijing auto show.

“Save your sales”

making fun of Chinese EV manufacturers for a while, Mr. Musk changed his tune by calling them “the most competitive automobile companies in the world” in 2024. During the last quarter of 2023, the Chinese automobile giant BYD (“Build Your Dreams”) has overtaken Tesla to become the world’s leading EV seller. A title that Tesla regained in the first quarter of 2024, without preventing BYD from remaining at the top in the world. Chinese market.

The American manufacturer is also in turmoil in China: it had to recall more than 1.6 million of its electric vehicles in January for a software problem.

On the social network Weibo, speculation has been rife since Mr. Musk’s arrival. Many believe that he will participate in the auto show in the capital. Internet user even claims he intends to try out an SU7 manufactured by the Chinese tech giant Xiaomi, a model revealed earlier in 2024.

The company’s CEO, Lei Jun, said in April that pre-orders for the vehicle were three to five times higher than expectations.

Other commentators believe that Elon Musk came to China to discuss with Beijing officials the possibility of commercializing Tesla’s Full Self-Driving technology in the Chinese market. “FSD is Tesla’s last hope to save its sales” in China, wrote one Weibo user.

Questions in Washington

Elon Musk’s interest in China raises questions from Washington. US President Joe notably declared in November 2022 that the billionaire’s links with foreign countries “deserved” to be examined.

The boss of Tesla, SpaceX and X also fueled controversy by suggesting that the autonomous island of Taiwan should become part of Chinese territory. A position well received by Beijing, not at all by Taipei.

ATS

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