Tesla CEO Elon Musk recently met with Chinese Prime Minister Li Qiang in Beijing during the Beijing Motor Show. This meeting signifies a new phase of dialogue and collaboration between Tesla and China, the world’s second-largest economy. Tesla’s largest manufacturing plant outside the United States is located in Shanghai, where half of the company’s vehicles are produced.
The meeting comes at a time when Tesla has been facing tough competition from Chinese electric vehicle brands, leading to a decline in earnings. Elon Musk’s visit to China followed the cancellation of a planned trip to India due to commitments with Tesla. The company recently announced layoffs of more than 10% of its workforce to streamline operations for future growth.
During his visit to China, Tesla reached a deal with Baidu to use its mapping license for data collection on Chinese roads, a significant step for the rollout of self-driving software in the country. Chinese Prime Minister Li emphasized the importance of cooperation between China and the United States, citing Tesla’s operations in the country as a successful example of mutual collaboration.
China remains committed to keeping its market open to foreign-funded firms, ensuring continued access and service guarantees for companies like Tesla. The hope is for a “win-win” cooperation between the two countries, fostering innovation and growth in the electric vehicle industry.