Elon Musk, the chief executive of Tesla, is reportedly planning a visit to China and will seek a meeting with top official Premier Li Qiang.
That’s according to a report on Friday from Reuters, which cited sources who said the visit could take place as soon as April, depending on availability for that official. MarketWatch has reached out to Tesla and China’s State Council Information Office.
While the nature of Musk’s trip is unclear, Tesla
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has seen some struggles with with sales in the country, though some have noted that picture has begun to brighten. The EV maker is expected to report delivery numbers this weekend, for the first time since it began cutting prices around the globe.
Citi analyst Itay Michaeli, who raised his price target on Tesla to $196 from $146 per share on Monday, said registrations for the company’s autos, a gauge of China demand, have risen for four straight weeks. Wedbush analyst Dan Ives last month lifted his price target to $225 from $200, saying China demand had swung to a “tailwind” as price cuts had helped drive demand in the country.
The electric-car maker cut prices last October on its Model Y and then made further price cuts in January. It has vying for market share with Chinese rival BYD
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of which Warren Buffett’s Berkshire Hathaway
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owns a 12% stake.
BYD delivered about 1.86 million EV autos in 2022, while Tesla delivered about 1.31 million units. Tesla has one factory in China, based in Shanghai.
Shares of Tesla rose 0.4% in premarket trading on Friday. Amid a broad rebound for tech shares after a weak 2022, shares have surged 58% year to date, helping boost Musk’s wealth pile by nearly $42 billion. He’s the world’s second wealthiest man with a net worth of $179 billion, according to the Bloomberg Billionaire’s Index.
