HONG KONG/SHANGHAI, May 29 (Reuters) – Tesla (TSLA.O) Chief Executive Elon Musk is expected to visit China this week, three experts said, in what will be his first trip to the country in three years would be. years.
Musk is expected to meet senior Chinese officials and visit Tesla’s factory in Shanghai, two of the sources said.
It wasn’t immediately clear who Musk would meet and what they would discuss. The people who know about the trip declined to name names because the matter is private.
Tesla and China’s State Council Information Office did not immediately respond to requests for comment.
Reuters reported in March that Musk was planning a trip to China and looking to meet with Chinese Premier Li Qiang as early as April, with the exact timing subject to Li’s availability.
China is Tesla’s second-largest market after the United States, and its Shanghai factory is the electric car manufacturer’s largest manufacturing center.
Musk also owns the social media platform Twitter, which is banned in China, although some people access it through virtual private networks (VPNs).
The trip would be Musk’s first in China since he rocked the internet in early 2020 by dancing on stage at an event at the Tesla factory in Shanghai.
It would also come at a time when Tesla is grappling with multiple issues, including increasing competition from Chinese automakers who are exporting their Chinese-made electric vehicles as demand in the world’s largest auto market weakens.
Tesla has not yet provided an update on its plans to increase production at its Shanghai plant by 450,000 vehicles per year, though it said in April it would build a factory in Shanghai to produce Megapack energy storage products.
The company has submitted plans to local authorities to expand powertrain production capacity at its Shanghai plant to 1.75 million units per year.
China’s state planner is grappling with excess capacity in its 100-plus player auto industry and warns against approving new production capacity.
Musk told CNBC earlier this month that “there are some limitations on our ability to expand in China.” He added: “It’s not a question of demand.”
In the same interview, Musk said tensions between the United States and China “should be a concern for everyone.”
Tesla is building a factory in Mexico that is expected to produce a lower-cost electric car on its next-generation platform.
Reporting by Julie Zhu in Hong Kong and Zhang Yan in Shanghai. Edited by Mark Potter