Tesla CEO Elon Musk interviewed by CNBC on May 16, 2023.
David A. Grogan | CNBC
tesla Chief Executive Elon Musk is expected to visit China this week, his first in three years, three people familiar with the matter said.
Musk is expected to meet with senior Chinese officials and tour Tesla’s Shanghai factory, two of the sources said.
It was unclear who Musk met with and what they would discuss. The sources declined to be named because the matter is private.
Tesla and China’s State Council Information Office did not immediately respond to requests for comment.
Reuters reported in March that Musk planned to travel to China and sought a meeting with Chinese Premier Li Qiang as early as April, depending on his availability.
China is Tesla’s second-biggest market after the U.S., and its Shanghai plant is the electric carmaker’s biggest production hub.
Musk also owns Twitter, a social media platform banned in China, although some people access it through a virtual private network (VPN).
The trip will mark Musk’s first trip to China since he sparked an internet buzz by dancing on stage at an event at Tesla’s Shanghai factory in early 2020.
It will also come at a time when Tesla is grappling with several issues, including increased competition with Chinese automakers that export electric vehicles made in China as demand in the world’s largest auto market weakens.
Tesla has yet to provide any updates on plans to increase production at its Shanghai factory by 450,000 vehicles a year, although the company said in April that it would build a factory there to make Megapack energy storage products.
The company has submitted plans to local authorities to expand powertrain capacity at the Shanghai plant to 1.75 million units per year.
China’s state planners have been grappling with overcapacity in an auto industry with more than 100 companies and have been cautious about approving new capacity.
Musk told CNBC earlier this month, “There are some constraints on our ability to expand in China.” He added: “It’s not a demand issue.”
In the same interview, Musk said tensions between the U.S. and China “should be on everyone’s mind.”
Tesla is building a factory in Mexico that is expected to produce low-cost electric vehicles based on its next-generation platform.