Elon Musk recently made a surprise trip to China to work on improving Tesla’s sales and introduce the carmaker’s self-driving technology in the country. This visit marked Musk’s second trip to China in less than a year, and he met with Chinese Premier Li Qiang during his stay. Musk sought approval from Beijing for the rollout of Tesla’s Full Self-Driving (FSD) software in China and for the transfer of data overseas. Tesla’s Autopilot system is available in China, but the full FSD feature needs approval to comply with data security regulations.
During the two-day trip, Musk appeared to have made progress towards his goals. The China Association of Auto Manufacturers confirmed that Tesla’s Model 3 and Y vehicles had passed China’s data security requirements, which previously prevented them from entering certain sensitive areas in China due to spying and data security concerns. Tesla has also formed a partnership with Chinese tech giant Baidu to develop mapping and navigation functions as part of plans to deploy the FSD system in China.
Upon Musk’s visit, Tesla’s stock gained more than 6% in pre-market trading, indicating positive developments coming out of his trip. Navigating the complex Chinese market has been crucial for Tesla as it faces aggressive competition, declining sales, and softer demand globally. Musk’s ability to obtain approval to transfer data collected in China abroad could greatly accelerate the training of Tesla’s autonomous technology algorithms globally, marking a significant turning point for the company.
Premier Li praised Tesla as a model for US-China collaboration, recognizing the benefits that both countries can gain from each other’s development. Musk, in turn, praised Tesla’s Gigafactory in Shanghai and expressed willingness to deepen cooperation with China for mutual benefit. Musk’s meeting with Ren Hongbin, chairman of the China Council for the Promotion of International Trade, discussed Tesla’s future development in China and strengthening exchanges between American and Chinese business communities.
Musk’s trip to China coincided with the Beijing Auto Show where EV makers are showcasing their latest models in the world’s largest EV market. In response to growing competition and declining sales, Tesla has implemented aggressive price cuts in China and other major markets. Industry analysts believe that making FSD available in China and obtaining approval to transfer data abroad could significantly boost Tesla’s autonomous technology and strengthen its EV footprint in the Chinese market. Musk’s visit also comes at a time when US-China relations are tenuous, with both countries working to stabilize ties.
