Elon Musk meets with the foreign minister of China

on May 30, 2023
  • Elon Musk made his first visit to China in about three years on Tuesday.
  • Wedbush Securities' Dan Ives commented on the news in a research note.
  • Tesla shares are up nearly 90% versus the start of the year at writing.

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Shares of Tesla Inc (NASDAQ: TSLA) opened up this morning as CEO Elon Musk met with senior officials in China. It’s his first visit to Beijing since the start of the pandemic.

Analyst comments on Musk’s visit to China

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Most importantly, the billionaire spoke with Qin Gang – the Foreign Minister of China.

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Gang reportedly told Musk today that Beijing was committed to refining the business environment for foreign companies like Tesla. Reacting to the news, Wedbush Securities analyst Dan Ives said in a note to clients:

Production scale and scope of Tesla in China remains one of its key advantages as Musk & Co. face increasing domestic competition with an EV price war underway within the country.

His “buy-equivalent” rating on Tesla shares comes with a price target of $215 that suggests another 6.0% upside from here.

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Musk reportedly wants to expand business in China

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On Tuesday, CEO Elon Musk signalled plans of expanding business in China, as per the country’s foreign ministry.

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He was also quoted opposing a decoupling of the world’s two biggest economies and describing the U.S. and China as conjoined twins. According to Wedbush’s Ives:

Playing nice in the sandbox in Beijing is something the Street is laser focused on to make sure there are no disruptions to Tesla’s expansion and tentacles within China for the coming years.

China remains the second-largest market for the electric vehicles manufacturer that is yet to officially verify the aforementioned remarks. Versus the start of 2023, Tesla shares are up nearly 90% at writing.

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