Tesla CEO Elon Musk will reportedly travel to China this week to meet senior officials and visit the Gigafactory Shanghai, Reuters reports citing three sources familiar with the matter.
It is worth noting that this reported trip would mark Musk’s first return to the country since early 2020, when he showcased his dance skills during the Model Y launch at the Giga Shanghai.
What would be the focus of the meeting?
Unfortunately, the sources did not disclose the exact people Musk would meet and the agenda of the meeting. There was also no official statement from Tesla and China’s State Council Information Office yet.
In retrospect, EV-a2z reported in late March that CEO Musk would visit China to meet Chinese Premier Li Qiang. It is worth noting that Li was the party secretary tasked to supervise the development and inauguration of Tesla’s Giga Shanghai before he was appointed premier in March.
As most know, China is the electric vehicle giant’s second-biggest market after the US. The Giga Shanghai is the company’s largest production hub.
In early April, Tesla also announced plans to establish a new Megafactory for its Megapack production, with an annual production target of 10,000 units.
Reuters also suggests that the meeting could be about Twitter, which is currently banned in China. Nonetheless, some consumers can still access it through virtual private networks (VPNs).
Apart from that, the report also noted that Tesla applied to expand the annual capacity for its powertrain production at the Giga Shanghai to 1.75 million units. However, China’s state planner has been apprehensive about authorizing new production capacity due to oversupply in the auto industry, as there are now over 100 automakers.
Musk stated earlier this month to CNBC that “there are some constraints on our ability to expand in China,” adding that “it’s not a demand issue.” He also warned that US–China tensions “should be a concern for everyone.”
See Also:
- Tesla CEO Elon Musk to visit China to meet with premier, per report
- Tesla reportedly appoints China chief as highest-profile executive after Elon Musk
- Report: Tesla China Exec Tom Zhu named as Elon Musk’s successor
- Tesla obtains key endorsement for Full Self-Driving in China
- Tesla will launch a new Megapack battery production plant in Shanghai, China
Nonetheless, America’s leading automaker is currently developing its Mexican plant, which would produce more affordable EVs as they will use Tesla’s next-gen platform.
