Tesla in focus as Elon Musk to visit China for the first time in three years

Tesla CEO Elon Musk is scheduled to visit China later this week in what would be his first trip to the world's largest electric vehicle market in three years. The big focus is expected to be on the EV company which has a plant in Shanghai, especially because Tesla officials were recently in India to reportedly discuss the potential of having a facility here.

China is crucial for Tesla as it is for most global automotive manufacturers. The plant in Shanghai was the first overseas facility for Tesla when it was opened in 2019. During his upcoming trip, Musk is expected to hold talks with high-ranking Chinese government officials.

According to reports, Musk is also expected to visit the Tesla Shanghai facility although the exact purpose of this visit, as well as his possible meeting with Chinese officials, is not yet known. But in the face of increased competition between global and local players in the country, it is possible that Musk takes a closer look at how to blunt emerging challenges.

Slowing demand for EVs has also loomed as a dark cloud with the Chinese government now looking to encourage rural buyers to make the switch. Local governments are being urged to offer incentives to not just buyers but to those installing charging infrastructure as well. While local EV manufacturers could have a better ability to penetrate and tap into the hinterland, it could also be a fertile play-field for global brands like Tesla.