Tesla CEO Elon Musk recently visited China during the Beijing Motor Show to meet with Chinese Prime Minister Li Qiang. This meeting represents 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.
This 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. The partnership with Baidu will help Tesla improve its mapping capabilities and navigate through China’s complex road network more effectively.
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. He reiterated China’s commitment 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.