Tesla, Inc. CEO Elon Musk’s China visit is a big deal as the billionaire is visiting the country for the first time in about three years, said Wedbush analyst Daniel Ives.
Musk is likely to spend most of his visit around the key Giga Shanghai factory, Ives said in a note. He noted that the factory now produces over 80,000 units per month.
The production scale and scope in China, according to the analyst is one of Tesla’s key advantages due to intensifying domestic competition from the likes of BYD Company Ltd
Tesla is also eyeing a new battery plant in Shanghai with a production capacity of 10,000 new Megapacks each year, the analyst noted. This will help the company expand its battery capacity globally along with its U.S. production, he said.
Ives expects Musk to meet with key Chinese officials in Beijing, including possibly Chinese Premier Li Qiang.
Building Tesla’s China footprint is important as it remains the “golden goose EV market,” Ives said.
The visit comes at a key juncture when the price war is intensifying in the country. “Gaining market share against domestic competitors is right now front and center for the Tesla story,” he said.
