Elon Musk heads for China; India on hold
The CEO of Tesla Corp., Elon Musk, landed in Beijing on Sunday in an unexpected visit to the country. This development comes just a week after Musk cancelled his long-anticipated India visit to meet PM Narendra Modi, citing ‘Tesla obligations’.
China has been Tesla’s second-biggest market ever since its entry into the country a decade ago. Musk is reported to be meeting with high-ranking Chinese officials to obtain permission to transfer data collected in the nation since 2021 back to the states for training models overseas.
Reports from Reuters suggest Tesla has stored all vehicle data collected by its fleet of vehicles in Shanghai but has not transferred data overseas in accordance with Chinese regulations.
Previously, in February, Tesla suffered considerable losses in equity shares following reports of major malfunctions in the vehicle’s Fully Self-Driving (FSD) technology that caused several accidents.
The Texas-based automobile giant established its biggest assembly plant in Shanghai, China, in 2020 and produces over 1 million Model Y and Model 3 vehicles every year. Considering the long history of cooperation with China and the recent rows over its dangerous FSD technology, Musk may seek to transfer data back to the United States for training algorithms for bettering its autonomous driving capabilities, which the company is renowned for.
Chinese state media CGTN stated that Musk met Chinese Premier Li Qiang after his arrival in Beijing but did not mention if they spoke about FSD and data transfer permissions.
Elon Musk meets Chinese Prime Minister Li Qiang in Beijing during his visit to China🇨🇳#ElonMusk #China #Beijing
pic.twitter.com/6RFxaNwzXx— dailyns.com (@Dailyns07) April 28, 2024
CGTN also said Musk is scheduled to meet the president of the China Council for the Promotion of International Trade (CCPIT), Ren Hongbin, to delve into more enhanced cooperation with China. Elon Musk’s visit to the country also aligned with the ongoing Beijing auto show, which will continue until May 4.
Musk cancelled his India visit, citing “Tesla Obligations”
Musk’s China visit comes just days after he cancelled his much-anticipated visit to India, citing “Tesla Obligations.” He was scheduled to discuss the future of the Indian EV automobile market with Prime Minister Narendra Modi. He has said he will be rescheduling his visit later this year.
Policymakers in India had recently updated its EV policy in light of Musk’s visit, slashing import duties to 15% from previously 100% for EV automobiles.
Finance Minister Nirmala Sitharaman had announced earlier in March that the new EV policies were aimed to attract foreign corporations to invest in India’s growing EV market. The policy is also aimed at decreasing India’s dependency on oil imports and bolstering India’s transition to green energy.
In the light of Musk’s “Tesla obligations” statement, experts speculated that Musk’s cancellation of the prescheduled India visit indicated a high-gravity situation that required the CEO’s complete attention.
Earlier this month, Tesla recalled over 4,000 Cybertruck pickups after a US federal agency (the National Highway Traffic Safety Administration) raised concerns over a problem with the accelerator pedal getting stuck, increasing the risk of crashes and grievous bodily injury.
In addition to discussing India’s prospects in EVs, Musk was also scheduled to meet Indian space start-ups to witness India’s indigenous tech capabilities. Founders of companies like KaleidEO, Dhruva Space, SatSure, Skyroot Aerospace, and other space start-ups conveyed their disappointment after the Tesla CEO cancelled his visit last week.
Musk’s surprise Beijing visit may impact Indo-China relations
Previously, in June 2023, the central government had rejected China-based automobile company BYD’s (Build Your Dreams) proposal for building a $1 billion EV plant in partnership with Hyderabad-based Megha Engineering and Infrastructures Ltd. The move pointed towards India’s newly developed policy for filtering Chinese investments in India’s growing EC sector.
Indian policymakers had hoped that private players like Tesla’s involvement in the sector would bring a boom to India’s green prospects at a time when India and China are competing head-to-head in technological advancements.
Musk’s visit to China has created uncertainties for India’s potential EV prospects and has also established China as Tesla’s preferred automobile market.
In addition to the recent reports of the road China has built in Pakistan’s (POK), Siachen Glacier over the past year, close to India’s northernmost border, Musk’s recent Beijing visit will have a further negative impact on current Indo-China relations.
