During a weekend trip, Musk met directly with top Chinese officials, including Premier Li Qiang. Tesla bull Dan Ives of Wedbush called the trip a “home run.”
The China visit halted the negative momentum surrounding Tesla and Musk. Tesla recently slashed its payroll by 10% amid lower earnings, and Musk also axed plans for a sub-$25,000 car.
Tesla still faces increasing pressure in China, where a host of smaller electric vehicle (EV) companies are beating it on price. Some, like BYD (OTCMKTS:BYDDF), are even beating Tesla’s margins with cars costing as little as $11,000, thanks to vertical integration.
Rather than compete on price, Musk hopes to meet the challenge with artificial intelligence (AI) features like self-driving. Musk said Tesla will invest $10 billion in AI software this year and introduce its Robotaxi on August 11.
"For the regulated community, a FONSI represents happy days."125
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