Achi news desk-
Tesla CEO Elon Musk arrived in Beijing on Sunday for an unannounced visit, where he was expected to discuss the distribution of full self-driving software (FSD) and permission to transfer data abroad, according to a person with knowledge of the matter.
State media in China reported that he met Prime Minister Li Qiang in Beijing, during which Lee told Musk that Tesla’s development in China could be seen as a successful example of economic and commercial cooperation between the US and China.
“An honor to meet Prime Minister Li Qiang. We have known each other for many years, since the early days of Shanghai,” Musk posted on social media platform X, appearing in a photo with the prime minister.
Tesla reached an agreement with Chinese authorities on a factory in Shanghai, its first outside the United States, in 2018.
The American electric car maker released FSD, the most autonomous version of its Autopilot software, four years ago, but has yet to make it available in China, the world’s second-largest market, despite customer demand.
Musk said this month that Tesla may make FSD available to customers in China “very soon,” in response to an X query.
Stock analysts at Wedbush called the surprise visit “an important moment for Tesla.”
“While the long-term valuation story at Tesla hinges on FSD and autonomy, a key piece missing from this puzzle is Tesla making FSD available in China, which is now on its doorstep,” Wedbush said in an emailed company report.
Rival Chinese automakers like Xpeng, a new tab developer, have sought to gain an edge over Tesla by launching similar software.
Tesla has since 2021 stored all data collected by its Chinese fleet in Shanghai as required by Chinese regulators and has not transferred any information back to the United States.
Musk is seeking approval to transfer data collected in the country abroad to train algorithms for its autonomous driving technologies, the person said.
Musk’s visit to China, first reported by Reuters, was not publicly marked and the person spoke on condition of anonymity because he was not authorized to speak to the media. Tesla did not immediately respond to a request for comment.
China’s state broadcaster CCTV in its report on Musk’s meeting with Li did not say whether the two discussed FSD or data.
Earlier today, a separate report carried by state radio said Li visited the ongoing Beijing auto show and commented on how China’s smart new energy (NEV) sector has taken a leading position in the market and that the country must work hard to maintain its advantages.
Musk also met with Ren Hongbin, a government official who heads the China Council for the Promotion of International Trade, the organizer of the auto show, state media reported.
“It’s good to see electric vehicles advancing in China. All cars will be electric in the future,” Musk said in a video posted on social media by a user identified with state media.
Late Sunday, a leading Chinese automobile association published a list of 76 car models it said it had tested and found to meet China’s information security requirements, including Tesla’s Model Y and Model 3 cars.
Musk’s trip came just over a week after he canceled a planned visit to India to meet with Prime Minister Narendra Modi, citing Tesla’s “very heavy debts.”
The company said this month it would lay off 10 percent of its global workforce as it grapples with declining sales and an intensifying price war for electric vehicles led by Chinese brands.
U.S. auto safety regulators said Friday they had launched an investigation into whether Tesla’s recall of more than 2 million U.S. vehicles announced in December to install new Autopilot safeguards was adequate following a series of crashes.
Tesla has sold more than 1.7 million cars in China since it entered the market a decade ago and the Shanghai factory is its largest in the world.
GM’S BARRA visited
GM CEO Mary Barra made an unannounced visit to the world’s largest auto market on Friday, according to two people familiar with her schedule. GM did not immediately respond to a request for comment.
Also on Friday, Grace Tao, Tesla’s vice president in charge of external relations in China, posted a commentary on the social media account of state media People’s Daily, claiming that autonomous driving technologies will be the EV industry’s new growth engine.
Tao said Tesla is leading autonomous driving research and development with its “end-to-end neural network” technology and data collected from millions of cars on the road.
China’s complicated traffic conditions with more pedestrians and cyclists than many other markets provide more scenarios that are key to training autonomous driving algorithms at a faster pace, according to industry experts.
Musk said last week that Tesla will introduce new, cheaper models using its existing EV platforms and production lines and offer a new “robotaxis” with self-driving technology. He said at X this month that he will unveil the Robotaxis on August 8th.
Tesla shares have lost nearly a third of their value since the start of the year, as concerns grew about the EV maker’s growth trajectory. Last week, Tesla reported its first quarterly revenue decline since 2020 as the COVID-19 pandemic slowed production and shipments.
