Elon Musk, CEO of Tesla, speaks with CNBC on May sixteenth, 2023.
David A. Grogan | CNBC
Tesla Chief Executive Elon Musk is predicted to go to China this week, three individuals with knowledge of the matter said, in what could be his first trip to the country in three years.
Musk is predicted to satisfy senior Chinese officials and to go to Tesla’s Shanghai plant, two of the sources said.
It was not immediately clear who Musk would meet and what they might discuss. The individuals with knowledge of the trip declined to be named because the matter is private.
Tesla and China’s State Council Information Office didn’t immediately reply to requests for comment.
Reuters reported in March that Musk was planning a visit to China and in search of a gathering with Chinese Premier Li Qiang as early as April, with the precise timing subject to Li’s availability.
China is Tesla’s second-largest market after the USA, and its Shanghai plant is the electrical carmaker’s largest production hub.
Musk also owns social media platform Twitter, which is banned in China, although some people access it via virtual private networks (VPNs).
The trip would mark Musk’s first in China since he set the web abuzz by dancing on stage during an event at Tesla’s Shanghai factory in early 2020.
It might also come at a time when Tesla is grappling with multiple issues, including intensifying competition with Chinese automakers which might be exporting their China-made electric vehicles as demand on this planet’s largest auto market weakens.
Tesla has not yet given any update on its plans to extend output by 450,000 vehicles a 12 months at its Shanghai plant, even though it said in April it will construct a factory in Shanghai to provide Megapack energy storage products.
The corporate has submitted plans to local authorities to expand capability for producing powertrains on the Shanghai plant to 1.75 million units annually.
China’s state planner has been combating a capability glut in its auto industry with greater than 100 players and has been cautions about approving latest production capability.
Musk told CNBC earlier this month that “there are some constraints on our ability to expand in China.” He added: “It isn’t a requirement issue.”
In the identical interview, Musk said tensions between the USA and China “must be a priority for everybody.”
Tesla is constructing a plant in Mexico expected to provide a lower-cost electric automotive built on its next-generation platform.
