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Tesla to continue to expand in China despite a tough year

Tesla CEO Elon Musk praised China and said the company will continue with its expansion in China. Musk talked about this at the World internet conference held virtually. The conference was held by the Cyberspace Administration of China. It is not the first time Musk has complimented the country, saying China is a “global leader in digitalization”.

Tesla to Increase Investment and R&D in China - Pandaily

Image credits- Pan Daily

Two weeks ago, Musk stated at the World New Energy vehicle that Chinese automakers were the “most competitive in the world”. While it is true that it may seem Tesla facing issues in the country may make it seem so. But it is true that there are many EV makers in China. While many other companies in other countries followed Tesla or competed with Tesla in many aspects. In China, the EV makers made innovations like battery swapping, which gives those companies an advantage with the prices of their vehicles. China has the largest potential market for automakers, also has many local companies with innovative concepts.

Furthermore, Musk stated that Tesla will continue with its investments and commitment to China. In less than two weeks, Musk is seen complimenting the country for its progressive nature. Said, “My frank observation is that China spends a lot of resources and efforts applying the latest digital technologies in different industries, including the automobile industry, making China a global leader in digitalization.” He further added, “Tesla will continue to expand our investment and R&D efforts in China.”

Tesla in China

While Tesla was focusing on improving sales, the company faced many things this year. Initially, it was banned in military and personnel locations in Beijing which questioned the safety of the users or the nearby people. There are cameras within the car, and around the car which were installed for making the driver-assist feature possible. However, Chinese officials felt that it is not safe that the American company’s car can be looking at them.

The other situation was when a customer protested that Tesla cars are not safe. It was the result of the customer’s parents using a Tesla car and being in an accident. This situation caused media negativity, and also reduced sales for the company for 1-2 months. Eventually leading to people posting various things on the internet for popularity. The ruckus had to be controlled.

Despite all the challenges, Tesla sales picked up quickly and the Giga Shanghai is predicted to produce more vehicles this year. Compared to the Tesla market in the US and Europe, China turned out to be different for Tesla.

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