Tesla CEO Elon Musk made a surprise visit to China on Sunday, meeting with government officials to discuss the rollout of Tesla's Full Self-Driving (FSD) software in the country. The trip comes just a week after Musk abruptly postponed a planned visit to India for high-level investment talks.
During his meeting with Musk, Chinese Premier Li Qiang praised Tesla's growth in China, calling it "a successful example of Sino-U.S. economic and trade cooperation," according to Chinese state media. Musk is seeking regulatory approval to introduce FSD, which is not yet capable of fully autonomous driving, in key markets like China.
A major hurdle for Tesla has been obtaining permission to transfer FSD data collected in China to the United States for training its algorithms. However, the China Association of Automobile Manufacturers announced that Tesla has cleared Beijing's data security tests, and local authorities have lifted restrictions on Tesla vehicles in certain areas.
Musk's visit coincides with the Beijing Auto Show, where rival automakers are showcasing new models with advanced driver-assistance features. Tesla, which has no new EVs to display, is not participating in the event. The company has been facing intense competition and has resorted to aggressive pricing, including recent price cuts earlier this month.
Last week, Musk abruptly cancelled a scheduled visit to New Delhi, citing "very heavy Tesla obligations." He was expected to meet with Prime Minister Narendra Modi and announce a significant investment in India, potentially including a Tesla factory. An India factory would allow Tesla to enter the huge potential market while bypassing heavy import duties, but a low-cost Tesla EV would be crucial to tap into the country's market, which has limited EV charging infrastructure.
Tesla's stock surged 14.4% last week to $168.29, rebounding from a 15-month low despite the company's Q1 earnings per share missing lowered expectations. Investors were encouraged by Tesla's plans for more affordable EVs and Musk's optimistic predictions for higher deliveries in 2024.
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