Photo: Tesla_Asia
In the wake of Tesla’s CEO Elon Musk’s engagement with Qin Gang, China’s Foreign Minister, the electric car giant saw a significant boost in its shares. This notable rise comes as Beijing reinforces its openness to international business, with Musk hinting at the company’s further expansion into the Chinese market.
The encounter between Musk and Qin, China’s recent U.S. ambassador, comes amid ongoing tech-related tensions between the U.S. and China. Qin lauded the “unprecedented growth potential and market demand” brought about by China’s “modernization,” which is driven by its massive population and shared prosperity, reports CNBC.
The arrival was Musk’s first visit to China in three years. Yesterday, Reuters reported Musk had a visit planned.
This dialogue accentuates China’s burgeoning electric vehicle market, with Qin reiterating China’s commitment to offer a market-oriented and law-compliant business environment for international firms, including Tesla.
Echoing Qin’s sentiments, Musk commended the Chinese people and the nation’s achievements, and outlined Tesla’s opposition to “decoupling,” signaling its willingness to continue expanding its business within China, according to the Chinese foreign ministry statement.
The engagement sparked a surge in Tesla’s shares, which jumped 5% after the markets opened Tuesday, currently now at $200.64 per share as of writing, settling at 3.87%.
However, amidst the positive discourse, the meeting between the tech billionaire and the Chinese foreign minister also unfolds during a period of sustained technology dispute between the U.S. and China. Previous year’s sweeping export restrictions by Washington on critical chips and semiconductor equipment posed a significant hurdle for Beijing’s drive to bolster its domestic industry in this vital technology sector.
On the competitive front, Tesla faces an increasingly challenging market in China. Amid a stiff macroeconomic landscape in the world’s second-largest economy, Tesla has been recalibrating the prices of its vehicles.
China remains Tesla’s second-largest market, and Musk has been keen to maintain favorable relations with Beijing. The entrepreneur has pledged significant investments over the years and lauded the country’s technological advancements. “China rocks in my opinion,” Musk said in 2020.
As part of its continued commitment to China, Tesla announced plans last April to construct another plant in the region to manufacture its Megapack energy storage system. The company’s largest car production factory is already located in the bustling mega-city of Shanghai.
