Tesla, Top Officials and Technology: Elon Musk Visits China for First Time in Three Years
Key takeaways
- Tesla CEO Elon Musk visited China to speak with government officials, business leaders and see his Tesla Gigafactory
- China has a massive EV market with huge potential for Tesla to expand into
- Tesla stock has climbed over 11% this week at the news
Tesla CEO and billionaire Elon Musk made a flying visit to China this week to rub shoulders with Chinese officials and check in on Shanghai’s Tesla gigafactory, which has been the company’s critical move in the electrifying Chinese EV market. Let’s take a closer look at the visit and what the impact on Tesla’s stock has been.
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What was Elon doing in China?
It was a short trip, but Musk packed in many meetings with Chinese officials, including the Chinese foreign minister, the minister of industry and information technology and the Shanghai party secretary. It was all in aid of discussing the growth of the global EV industry, in which Tesla has been a key driver (pun intended) of the market.
Musk also took the time to see the chairman of CATL, the world’s largest EV battery company and a Tesla supplier. It’s previously been reported that Tesla is looking to partner with CATL on a battery plant in the U.S.
Elon also made a late-night visit to the Shanghai-based Tesla gigafactory, which has seen discontent from workers over bonus cuts in recent weeks. He praised the work ethic of the factory workers, saying it “warms my heart” to see their hard graft despite pandemic challenges.
What could it mean for Tesla stock?
China’s EV market is massive, so investors knew Elon’s visit was a step in the right direction for Tesla. The share price jumped 4% when the visit was announced on Tuesday and has soared 11.24% in the last five days.
Tesla’s continued expansion into China and boosting its market share in the country’s EV market, which has seen a number of Chinese EV competitors spring up, can only be a win for the long-term health of the stock — providing there aren’t sanctions introduced by either the U.S. or China.
That’s why the trip was also a positive move for U.S.-China relations, which have been strained in recent years. One of the U.S.’ largest companies expanding its business in China could help to bridge the gap between the two superpowers.
The bottom line
Elon’s visit to China was largely considered a success by Tesla investors and Chinese officials, given the stock’s decent bump in price this week. If Tesla can consolidate its position in the market, investors should be set for a long-term increase in Tesla stock as the EV market flourishes.
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