Elon Musk's unannounced visit to China aims to navigate regulatory hurdles

Elon Musk's unannounced visit: Tesla CEO Elon Musk embarked on a surprise trip to Beijing on Sunday, aiming to kickstart discussions with senior Chinese officials regarding the implementation of Full-Self Driving (FSD) software in China, according to sources familiar with the matter.

Musk's agenda includes seeking approval to transfer data collected by Tesla's Chinese fleet abroad to train algorithms for its autonomous driving technologies. Since 2021, Tesla has stored all data collected by its Chinese fleet in Shanghai as per Chinese regulations, refraining from transferring any back to the United States.

Despite customer demand, Tesla has yet to roll out FSD, its most autonomous Autopilot software version, in China. Musk hinted earlier this month that FSD could be available to Chinese customers "very soon," addressing inquiries on the social media platform X.

This unpublicised trip to China follows Musk's recent cancellation of a planned visit to India due to "very heavy Tesla obligations" just over a week ago.

Tesla, grappling with declining sales and an intensified EV price war led by Chinese brands, announced this month a 10 per cent global workforce reduction.

Musk's Gulfstream private jet, registered to Falcon Landing, was scheduled to land at Beijing Capital Airport on Sunday morning, as reported by Chinese flight tracking app Flight Manager.

Tesla's presence in China, its second-largest market, has been significant, with over 1.7 million cars sold since its market entry a decade ago. Musk's visit coincides with the ongoing Beijing autoshow, underscoring the strategic importance of China's EV market for Tesla's global expansion plans.

Tesla's VP, Grace Tao, highlighted the pivotal role of autonomous driving technologies in the EV industry's growth trajectory, emphasising Tesla's leadership in autonomous driving R&D.

Amidst concerns about Tesla's growth trajectory, Musk hinted at introducing new, cheaper models and unveiling a new "robotaxi" equipped with self-driving technology.

Tesla shares have faced volatility, declining almost a third since the year's start, compounded by the company's recent report of its first quarterly revenue decline since 2020.

(with Reuters inputs)