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Tesla shares rise 5% as Musk visits with China's foreign minister

Elon Musk appears to have plans to bring more business to Shanghai.

Published: May 30, 2023 11:35am

Tesla stock rose over 5% on Tuesday following news that Elon Musk met with China’s foreign minister Qin Gang, where he reportedly promised to deliver Musk a "better business environment."

The Chinese ministry released a statement on Musk’s meeting, writing that the PRC is "committed to creating a better market-oriented, rule-of-law-based and internationalised business environment" for Musk’s EV company Tesla, adding that China has “broad prospects” for the electric car industry’s development. 

In response, Musk reportedly hinted that Tesla is interested in expanding its enterprise in China.

Tesla has already established itself as an EV leader in China. Local reports stated that, in May, the EV giant accounted for a quarter of all auto production in Shanghai last year, assembling one million vehicles there by August. 

In April, Tesla announced it would be bringing a Megapack factory to Shanghai as well, where it will focus on building batteries to supplement power grids.

Musk made the unexpected visit to China for the first time since the Covid-19 pandemic era. According to Reuters, his private jet was spotted touching down early Tuesday morning. 

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