An aircraft believed to belong to the CEO of Tesla, Elon Musk, was recorded by a flight tracking app to have touched down in Beijing on April 28. Sources in the know have revealed that this marks the onset of an unexpected visit of the tech magnate to China, a key market for the electric vehicle giant. Indications are he’s there to engage with top-level Chinese officials regarding several critical agendas, prominently the introduction of Tesla’s Full Self-Driving (FSD) technology in China and the sensitive topic of cross-border data sharing for autonomous driving development.
Tesla, since 2021, has diligently complied with Chinese regulations, ensuring that data from its Chinese-operated vehicles is stored locally in Shanghai and not transferred internationally. This is a significant point of discussion, as the company has been eager to deploy its FSD feature in China, which has been available in other markets for four years. The introduction of FSD in China will be a major milestone for Tesla, bringing it to par with domestic rivals like Xpeng, who have been swiftly developing comparable autonomous driving software to compete with Musk’s firm.
The spontaneity of Musk’s visit is accentuated by its near-total confidentiality prior to his arrival; my sources, who relayed these details under the condition of anonymity, were not authorized for media disclosure. At present, Tesla’s spokespeople are mum on the visit, with requests for elaboration on the matter going unanswered.
Musk’s sudden change in travel plans comes on the heels of a canceled trip to India, where he was expected to meet with Prime Minister Narendra Modi. Just over a week ago, Musk cited “very heavy Tesla obligations” as the reason for this change. Tesla has been confronting its own set of challenges, with a recently announced intent to slim down its global workforce by roughly 10%, amidst diminishing sales and an ongoing price competition instigated by Chinese EV brands.
Insight into Musk’s movements was possible thanks to the landing of a Gulfstream jet, registered to Falcon Landing, an entity connected to Musk’s enterprises SpaceX and Tesla, at Beijing Capital Airport as documented by Flight Manager. The aircraft, bearing the tail number N272BG, is one of two jets under the Falcon Landing umbrella. The said jet is different from N628TS, which Musk utilized for his visit last year, involving discussions with Chinese officials and a tour of the Shanghai Tesla facility.
This clandestine arrival coincides with the Beijing autoshow, which opened last week and runs until May 4. It’s noteworthy that Tesla has opted out of participating in the show this year, having last displayed their vehicles there in 2021. In a parallel yet unrelated development, GM’s CEO Mary Barra was also present at the auto event, albeit without prior announcement, as per sources familiar with her itinerary.
Tesla’s visibility in China is also maintained through Grace Tao, the company’s vice president in charge of external relations in the country, who penned a commentary in People’s Daily, a state media outlet, endorsing autonomous driving as the next pillar for EV industry growth. Tao emphatically put forward Tesla’s leading position in autonomous driving R&D which is reinforced by its ‘end-to-end neural network’ and the vast data collected by its fleet.
Importantly, industry experts note that China provides an array of complex driving scenarios, including dense pedestrian and cyclist traffic, which can make it a valuable crucible for refining autonomous technologies. Amid all this, Musk teased the unveiling of a new “robotaxi” equipped with self-driving technology, slated for revelation on August 8.
Nevertheless, the backdrop for Musk’s visit isn’t entirely positive; Tesla shares have seen a nearly one-third decline since the beginning of the year, rooted in concerns about the company’s growth trajectory, further compounded by the first quarterly revenue dip since the 2020 pandemic. As Tesla treads through these transformative times, all eyes will be on Musk’s engagements in China and their potential implications for the future of the EV industry.
