Billionaire Elon Musk has arrived in Beijing hoping to bring Tesla's self-driving technology to China, as the country faces stiff competition from local electric car makers in the world's largest auto market.
Musk is expected to meet with senior Chinese State Council officials and old friends in Beijing.
The Tesla CEO visited China at the invitation of the China Council for the Promotion of International Trade and met with Chairman Ren Hongbin to discuss further cooperation with China, according to CTGN news channel.
Tesla has faced intense competition from Chinese electric car makers in recent years and reduced the prices of its cars made in Shanghai by 6% to maintain its leadership at the forefront of the electric car sector in China.
China is increasingly offering advanced driver assistance systems and cars have higher levels of autonomous driving capabilities.
Elon Musk said earlier this month that self-driving, monitoring and fully autonomous driving options may soon be available to Tesla customers in China.
Tao Tao, Tesla's vice president of external relations in China, wrote in China's official People's Daily newspaper that autonomous driving is the main growth driver for China's new energy vehicle industry, and he believes the technology could spawn new business models such as robotaxis. This is... Elon Musk's vision.
Elon Musk's visit to China coincides with the 2024 Beijing Auto Show, which this year attracted more than 1,500 exhibitors from major brands displaying their modern electric cars. Tesla did not have a booth at the trade show and was last represented in 2021.
In 2019, when hosted by former Premier Li Keqiang, Beijing allowed the billionaire to drive a Tesla at the Zhongnanhai complex, the Chinese leader's home and workplace.
Last June, Chen Gang, then Chinese Foreign Minister, received Elon Musk during his visit to Beijing.
During the visit, Musk also met with Chinese Vice Premier Deng Xuexiang and the Chinese Minister of Industry and Commerce.
Tesla delivered 603,664 Model 3 and Model Y vehicles manufactured at its Shanghai factory to Chinese buyers last year, an increase of 37.3% from 2022.
This growth rate represents a 37% increase in sales in 2022, with approximately 440,000 vehicles delivered.
Tesla has sold more than 1.7 million cars in China since it entered the Chinese market in 2012. The factory is located in Shanghai and Musk has strong political support for the project.
As an additional commitment to China, Tesla has acquired land in Shanghai to build a factory there with a planned annual production capacity of 10,000 MB of battery storage plants.
Chinese electric car makers are trying to attract consumers with improved driver assistance features such as automated city and highway navigation and smart parking.
China is expected to become the largest market for connected cars, followed by the United States, India, Japan and Germany, where electrification, autonomous capabilities and advanced information technology will be the main growth drivers in this sector.
Self-driving cars are still more of a dream than a reality in China, where most robotaxis are only allowed to operate in certain suburbs where traffic conditions are more complex than in the city.
Self-driving car makers are struggling to make profits in China due to high operating costs and falling revenues.
Baidu, which has a fleet of robotaxis in several cities, said its self-driving unit is focused on generating revenue and profits after years of investment.