Tesla CEO Elon Musk recently held a meeting with Chinese Prime Minister Li Qiang in Beijing, during which they discussed potential collaboration and dialogue between the two companies. This encounter was particularly significant as it took place at the Beijing Motor Show, where Chinese manufacturers were showcasing their latest electric vehicle models.
Despite having a manufacturing plant in Shanghai that produces half of Tesla’s vehicles outside the US, the company has faced challenges in the Chinese market due to intense competition from local brands. In fact, Tesla reported a significant drop in earnings in the first quarter of this year compared to the previous year. However, Musk’s visit to China came after canceling a trip to India to meet with Prime Minister Narendra Modi due to his busy schedule with Tesla.
During the meeting, Tesla struck a deal with Chinese tech giant Baidu to use its mapping license for data collection on Chinese public roads, which will aid in the rollout of self-driving software in China. Li emphasized the importance of cooperation between the US and China and highlighted Tesla’s operations in China as an example of successful mutual cooperation.
The prime minister expressed hope for “win-win” cooperation with the US and assured foreign-funded firms like Tesla would continue to be supported by China in its market. The meeting between Musk and Li signifies a positive step towards strengthening ties between Tesla and China and fostering innovation in the electric vehicle industry.
Tesla’s recent announcement of layoffs of over 10% of its global workforce is seen as an effort to streamline operations and focus on future growth opportunities. Despite facing challenges, Musk’s visit to China shows that Tesla is committed to exploring new opportunities and collaborations with international partners like China.
