Elon Musk Makes Surprise Beijing Visit, Woos Officials on Self-Driving Tech

Elon Musk made an unexpected visit to China to promote self-driving cars.

The world's richest man met with senior officials regarding the rollout of full self-driving (FSD) software and the transfer of data overseas. The CEO of Tesla and Space X is expected to discuss these key topics during his visit.

Chinese state media reported that Musk had talks with Premier Li Qiang, during which Li praised Tesla's development in China as a successful example of US-China economic and trade cooperation. Despite being Tesla's second-largest market, the FSD software has not yet been made available in China, prompting customers to urge its release. Musk hinted in a recent response on X that FSD might be introduced to Chinese customers "very soon."

Meanwhile, rival Chinese automakers like Xpeng have been actively rolling out similar autonomous driving software, posing competition to Tesla. Musk's visit aims to secure approval for transferring data collected in China overseas to train algorithms for autonomous driving technologies. Since 2021, Tesla has stored all data collected by its Chinese fleet in Shanghai, in compliance with Chinese regulations.

Musk's visit coincides with the Beijing auto show, although Tesla opted not to have a booth at the event this year. This unpublicized visit underscores the importance of Musk's discussions with Chinese officials and industry leaders. CCTV, the Chinese state broadcaster, reported Musk's meeting with Li but did not disclose specifics about the discussions regarding FSD or data transfer.

During his visit, Musk also met with Ren Hongbin, a government official overseeing the China Council for the Promotion of International Trade, which organizes the Beijing auto show. State media reported Musk expressing optimism about the progress of electric vehicles in China, emphasizing his belief that all cars will eventually be electric.

This visit to China follows Musk's recent cancellation of a planned trip to India to meet with Prime Minister Narendra Modi, citing "very heavy Tesla obligations." Tesla has faced challenges in the global market, leading to a recent announcement of a 10% workforce reduction as the company navigates falling sales and increasing competition, particularly from Chinese EV brands.

Furthermore, US auto safety regulators have initiated an investigation into whether Tesla's recall of over 2 million vehicles in the US to install new Autopilot safeguards, announced in December, was adequate following a series of crashes. Despite these challenges, Tesla remains a significant player in the Chinese market, having sold over 1.7 million cars since entering the market a decade ago, with its Shanghai factory serving as its largest facility.

Musk's visit to China underscores the strategic importance of the Chinese market for Tesla's future growth and development of autonomous driving technologies. As discussions progress, stakeholders eagerly await updates on Tesla's plans in China and the potential impact on the global electric vehicle industry.