Elon Musk Secures Data Approval and Collaboration Deal During Surprise China Visit Amidst Competition and Demand Slump

Elon Musk recently made a surprise visit to China as he aims to boost Tesla’s sales in the country while introducing its self-driving technology amidst intense competition from local automakers. The trip took place after a gap of nearly 12 months during which Chinese customers protested against price hikes and quality issues with their vehicles, leading to declining demand for Teslas. Musk met Premier Li Qiang on Sunday where the latter praised Tesla as an exemplary model of US-China collaboration in business ventures. During his two-day trip that ended on Monday, Musk also secured approval from China’s data security authorities regarding Model 3 and Y vehicles passing their requirements for storing user data locally due to spying concerns. Additionally, Tesla has reportedly reached a partnership deal with Chinese tech giant Baidu for mapping and navigation functions before launching its Full Self-Driving (FSD) feature in the country that was earlier banned from sensitive areas because of security issues. The stock prices of both companies rose following Musk’s trip to China, while Tesla shares have plummeted by 32% this year due to growing competition and price cuts made recently across major markets worldwide. Dan Ives, managing director at Wedbush Securities called Musk’s Beijing visit crucial during these tumultuous times when the US electric car maker faces fierce domestic EV competitors in China coupled with weaker demand for its vehicles. The trip comes after a recent meeting between U.S Secretary of State Antony Blinken and Chinese President Xi Jinping aimed at stabilizing bilateral ties, where Li expressed his support for Tesla’s Shanghai factory that Musk had inaugurated during one of their earlier meetings in 2018 when the latter was still serving as Shanghai’s party boss.