Earlier this year, employees of the Chinese military and state-owned companies were barred from using Tesla vehicles. Prohibited over concerns of “national security leaks”, the Elon Musk owned company lost years of built-up reputation.
Ever since, Elon Musk has consistently praised China in hopes of regaining reputation in the region. As Chinese companies like Xiaomi start to take on Tesla in vehicles and robotics, Tesla has some catching up to do.
Elon Musk praises China's digitization
Reported by CNBC, Tesla owner Elon Musk pledged the company's commitment to the region at the World Internet Conference. Musk explained that the country is the “global leader in digitalization”.
Musk continued to praise multiple facets of China's industry. Alongside digitalization, the Tesla CEO praised the country's automobile industry. This is in no small part to the region’s massive resources available for the tech sector.
The CEO said:
“My frank observation is that China spends a lot of resources and efforts applying the latest digital technologies in different industries, including the automobile industry, making China a global leader in digitalization. Tesla will continue to expand our investment and R&D efforts in China.”
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A trend to save Tesla
Success in China will be a major source of income for the Musk-owned tech company. Despite restrictions from the government, Tesla is hoping to massively increase production inside the region this year.
Reports state that Tesla will produce 300,000 cars in Shanghai by next month. The company has already produced 240,000 cars, consisting of Model 3 sedans and Model Y sports cars. However, following the aforementioned government restrictions, sales are expected to slow.
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