Musk expected to meet Chinese officials, visit Tesla’s Shanghai plant
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China is Tesla’s second-largest market after the United States, and its Shanghai plant is the electric carmaker’s largest production hub.
PHOTO: REUTERS
HONG KONG – Tesla CEO Elon Musk is expected to visit China this week in what would be his first trip to the country in three years.
Mr Musk is expected to meet senior Chinese officials and to visit Tesla’s plant in Shanghai, two sources said. It was not immediately clear who he would meet and what they would discuss.
Reuters reported in March that Mr Musk was planning a trip to China and seeking a meeting with Premier Li Qiang as early as April, depending on Mr Li’s availability.
China is Tesla’s second-largest market after the United States, and its Shanghai plant is the electric carmaker’s largest production hub.
Mr Musk also owns social media platform Twitter, which is banned in China, although some people access it via virtual private networks.
The trip would mark Mr Musk’s first in China since he set the Internet abuzz by dancing on stage during an event at Tesla’s Shanghai factory in early 2020.
It would also come at a time when Tesla is grappling with multiple issues, including intensifying competition with Chinese automakers that are exporting their China-made electric vehicles as demand in the world’s largest auto market weakens.
Tesla has not yet given any update on its plans to raise output by 450,000 vehicles a year at its Shanghai plant, although it said in April it would build a factory in the city to produce Megapack energy storage products.
The company has submitted plans to the local authorities to expand capacity for producing powertrains at the Shanghai plant to 1.75 million units annually.
China’s state planner has been struggling with a capacity glut in its car industry with more than 100 players and has been cautious about approving new production capacity.
Mr Musk told CNBC earlier in May that “there are some constraints on our ability to expand in China”, adding: “It’s not a demand issue.” He also said tensions between the US and China “should be a concern for everyone”.
Tesla is building a plant in Mexico expected to produce a lower-cost electric car built on its next-generation platform. REUTERS
