The 52-year-old billionaire’s purported agenda includes enabling Full Self Driving (FSD) in the country and utilising data gathered within China to refine its algorithms.
While FSD is accessible in several countries, including the US, it has yet to debut in China.
During a meeting with Chinese Premier Li Qiang, Elon was quoted by Chinese state media as saying Tesla was willing deep cooperation with China to achieve “more win-win results’.
Mr Li replied the Chinese market would “always be open to foreign-funded firms”.
Elon’s visit comes on the heels of a damning US report linking Tesla’s autonomous driving modes to at least 13 accidents, one of which resulted in a fatality.
China is Tesla’s second-largest market, with competitors including Xpeng, headquartered in Guangzhou, vying to challenge the brand’s dominance by integrating similar self-driving features into their vehicles.
Elon has lauded Chinese car manufacturers as “the most competitive car companies in the world”.
Tesla has taken proactive steps to assuage Chinese regulatory concerns, establishing a data center in Shanghai to process consumer data in compliance with local laws.
But Elon’s Beijing tour coincides with the US National Highway Traffic Safety Administration's (NHTSA) ongoing investigation into whether a recent recall adequately addressed safety issues related to Tesla's driver assistance system.
Despite Tesla’s software mandates for driver attentiveness and appropriate usage conditions, the NHTSA noted instances where drivers failed to engage sufficiently while utilising autonomous driving features.
Elon has long touted Tesla's potential to operate as autonomous “robotaxis”, but previous predictions for full autonomy have yet to materialize.
Critics accuse the Tesla CEO of habitually overstating the prospects of full autonomy to boost Tesla’s stock price, which has waned amidst global electric vehicle demand fluctuations and heightened competition from Chinese manufacturers.
Despite Elon’s denials, Tesla has resorted to price cuts in various markets, including China, to stimulate demand.
Elon’s recent statements on the necessity of frequent Tesla price adjustments reflect the company's strategy to align production with consumer demand.
Tesla’s financial performance for the first quarter of 2024 has seen a 13 per cent decline in automotive sales and a substantial profit decrease compared to the previous year, contributing to a notable 32 per cent plummet in its share price for the year.
