Tesla CEO Elon Musk’s recent visit to China has stirred discussions amidst production challenges and data transfer deliberations. Musk, who canceled a high-profile visit to India citing “Tesla related” commitments, has now turned his attention to discussions with Chinese government officials regarding the rollout of Tesla’s Full Self-Driving software and the transfer of data overseas.
According to Reuters, Musk aims to obtain approval for transferring data collected in China to train algorithms for autonomous driving technologies. Since 2021, Tesla has been storing all data from its Chinese fleet in Shanghai, complying with Chinese regulations.
China plays a pivotal role in Tesla’s global operations, hosting its largest plant in Shanghai, which produces over 1 million Model 3 and Model Y cars annually. With more than 1.7 million cars sold in China over the past decade, the country also serves as a crucial supply base for Tesla’s vehicles to markets like New Zealand, Australia, and Europe.
Musk’s visit coincides with the Beijing auto show, where he is scheduled to meet with Ren Hongbin, a government official overseeing the event. This visit follows Musk’s postponement of his India trip, prompting Indian policymakers to accelerate consultations for the country’s electric vehicle (EV) policy.
India’s recent EV policy revisions, including a reduction in import duties for electric cars priced above $35,000, aim to attract investments from major players like Tesla. The government’s efforts align with broader strategies to reduce dependency on imported crude oil, with a growing focus on fostering domestic manufacturing across industries.
Similar to the approach in mobile manufacturing, where global players receive incentives under schemes like the Production Linked Incentive (PLI), India seeks to create a vibrant EV ecosystem and bolster local production. The rejection of a proposed $1 billion EV plant partnership between China-based BYD and an Indian firm underscores India’s cautious approach towards Chinese investments in strategic sectors.
As discussions around Tesla’s presence in China continue amidst global supply chain challenges and geopolitical dynamics, the outcome of Musk’s visit holds significance for Tesla’s future operations in the region and India’s evolving EV landscape.