The billionaire behind Tesla has experienced a complex relationship with China, oscillating between admiration and criticism from officials and citizens alike.
The tech entrepreneur has earned praise as an innovative leader while simultaneously facing backlash from Chinese authorities and consumers over mishandled customer service issues. Meanwhile, his SpaceX company and its Starlink satellite network have drawn concern from the People’s Liberation Army, and Tesla’s competitive edge against Chinese electric vehicle manufacturers continues to shrink.
The business magnate currently joins over a dozen chief executives and senior leaders traveling with U.S. President Donald Trump to Beijing for discussions with Xi Jinping. The group includes Apple’s Tim Cook and Nvidia boss Jensen Huang, with most delegates working to address tensions with Beijing. The world’s wealthiest individual has extensive experience navigating the complexities of Chinese business relationships.
Speaking to media while departing the Great Hall of the People on Thursday, Musk expressed his desire to achieve “many good things” in China.
Despite increasing competition from domestic electric vehicle manufacturers on both technology and pricing fronts, Tesla and its founder maintain significant influence in China. This stems partly from the alignment between Musk’s business interests and Beijing’s strategic goals, according to Kyle Chan, a fellow in Chinese technology at the Brookings Institution.
“When you look at Beijing’s tech priorities, many of them line up almost perfectly with Elon Musk’s,” Chan explained, highlighting electric vehicles, autonomous driving, artificial intelligence, humanoid robotics, brain-computer interfaces, and satellite technology.
Tesla’s autonomous driving capabilities continue to set industry benchmarks in China, Chan noted.
Chinese automaker Chery takes cues from both Tesla and Toyota, according to its chairman, Yin Tongyue, who spoke with Reuters last month. The company, now expanding into European markets, seeks to combine Tesla’s innovation emphasis with Toyota’s quality focus, Yin explained.
Tesla made history in 2018 as the first international automotive company permitted to establish manufacturing operations in China without requiring a domestic partnership.
The company delivered approximately 626,000 vehicles in China last year, ranking as the nation’s fifth-largest automaker by electric and plug-in hybrid sales, based on China Passenger Car Association data. Chinese markets generated roughly one-fifth of Tesla’s total revenue last year, company records show.
Tesla’s approach to vehicle design centered on battery optimization and software integration has become “definitely one of the biggest inspirations for many Chinese carmakers,” according to Felipe Munoz, an experienced automotive analyst.
While traditional manufacturers struggled with pandemic lockdowns and chip shortages, Chinese companies concentrated on analyzing Tesla’s vehicles and developing their own comparable models, Munoz explained.
Beijing has expressed strong opposition to other aspects of Musk’s corporate holdings. SpaceX’s dominant position in low-Earth orbit satellite services, offering cost-effective and dependable communications, along with its role in the Russia-Ukraine conflict, has concerned Beijing and motivated the development of domestic alternatives.
“The excellent performance of ‘Starlink’ satellites in this Russian-Ukrainian conflict will certainly prompt the U.S. and Western countries to use ‘Starlink’ extensively” in potential Asian conflicts, stated a September 2022 publication co-authored by researchers from a People’s Liberation Army engineering university.
Although his X social media platform remains blocked in China, Musk has attracted 2.3 million Weibo followers and has been celebrated on Chinese social platforms as “a pioneer,” “Brother Ma,” and a “global idol” during previous visits. Even Musk’s mother has gained celebrity status in China.
His current visit occurs as he pursues $2.9 billion in solar panel manufacturing equipment from Chinese suppliers, Reuters reported in March. This initiative may face complications as China considers restricting exports of advanced technologies to the United States.
Tesla also seeks regulatory approval to expand its Full Self-Driving assistance technology.
Musk has navigated Chinese markets cautiously, recognizing that the world’s largest automotive market and its extensive supply networks remain crucial for supporting his diverse business ventures spanning electric vehicles, solar energy, and space exploration.
Tesla faced pressure to apologize to Chinese customers in 2021 for inadequate response to consumer complaints. This followed an incident where a dissatisfied customer protested atop a Tesla vehicle at the Shanghai auto show over brake malfunction complaints, creating viral social media content and drawing state media criticism.
Chinese military facilities banned Tesla vehicles in 2021 due to security concerns regarding onboard cameras. This restriction remained until Musk’s 2024 China visit and subsequent auto industry association endorsement of Tesla’s data compliance measures.
The most significant long-term challenge to Musk’s Chinese popularity may emerge from the continued advancement of domestic automotive manufacturers.
“As Chinese companies catch up or even overtake Elon Musk’s tech empire, his stature in China may start to dim,” said Chang Yan, founder of Supercharged, a prominent Weibo electric vehicle blog.
“But he will likely remain an icon among China’s tech industry for what he’s accomplished.”
