According to sources familiar with the matter, it is reported by Reuters that Tesla's Chief Executive, Elon Musk, is expected to visit China this week. This visit would mark Musk's first trip to the country in three years.
The sources indicate that Musk's itinerary includes meetings with high-ranking Chinese officials as well as a visit to Tesla's manufacturing plant in Shanghai.
The specific individuals Musk will meet and the topics of discussion remain unclear at the moment. The sources, who wish to remain anonymous due to the private nature of the matter, provided this information.
Both Tesla and China's State Council Information Office have not yet responded to requests for comment.
Back in March, Reuters had previously reported that Musk was planning a visit to China, aiming to meet with Chinese Premier Li Qiang as early as April, though the exact timing of the meeting was contingent upon Li's availability.
China serves as Tesla's second-largest market, following the United States, and the Shanghai plant stands as the company's primary production center for electric vehicles.
According to sources, it is reported that Elon Musk, who also owns the social media platform Twitter (which is banned in China), is expected to visit China this week. This would be his first visit to the country since he made headlines by dancing on stage during an event at Tesla's Shanghai factory in early 2020.
The timing of Musk's visit coincides with Tesla facing various challenges, including increased competition from Chinese automakers who are exporting their domestically manufactured electric vehicles amidst a weakening demand in the world's largest auto market.
Although Tesla has not provided updates on its plans to expand production by 450,000 vehicles per year at its Shanghai plant, the company did announce in April its intention to construct a factory in Shanghai for the production of Megapack energy storage products. Tesla has also submitted proposals to local authorities to increase the capacity of powertrain production at the Shanghai plant to 1.75 million units annually.
China's state planner has been grappling with excess capacity in its auto industry, which consists of over 100 players, and has been cautious about approving new production capacities.
In a recent interview with CNBC, Musk acknowledged certain constraints on Tesla's expansion in China but emphasized that it was not due to a lack of demand. He also expressed concern about the tensions between the United States and China, stating that it should be a concern for everyone.
In addition to its operations in China, Tesla is constructing a plant in Mexico that is expected to manufacture a more affordable electric car based on its next-generation platform.
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