In an unexpected visit, Tesla CEO Elon Musk traveled to China and met with Premier Li Qiang on Sunday, just moments after his arrival in Beijing. Premier Li expressed China's openness to foreign companies and praised Tesla as a successful example of China-US trade cooperation, according to China Central Television.

Musk's trip to China comes at a critical time for Tesla, as the company faces challenges with slowing electric vehicle (EV) sales, leading to cost-cutting measures and a reduction of more than 10% of its global workforce. As a result, Musk had to postpone his visit to India to address urgent matters at the automaker.

During his meeting with Premier Li, Musk reiterated Tesla's willingness to deepen cooperation with China. He also met with Ren Hongbin, the head of the China Council for the Promotion of International Trade, with discussions expected to center around the rollout of Tesla's driver-assistance system. It is worth noting that Musk arrived in Beijing on a Gulfstream registered to SpaceX.

Reuters previously reported that Musk planned to discuss Tesla's software during his visit, particularly their Full Self-Driving (FSD) system. Tesla is currently working on obtaining regulatory approval for FSD in new markets. Previous restrictions on Tesla vehicles in China, such as bans at military compounds and some government venues, were due to concerns over the cameras used for their driver-assistance systems, which do not enable fully autonomous driving.

China's EV market has seen a rise in advanced driver-assistance systems (ADAS), with local companies like Xpeng Inc., Xiaomi Corp., and Huawei Technologies Co. incorporating sophisticated technology in their vehicles. Additionally, price cuts by competitors have added pressure on Tesla to follow suit.

Premier Li, during his visit to the Beijing Auto Show, emphasized China's leading position in the new energy vehicles industry and encouraged industry players to maintain their competitive advantages. He also pledged to ensure a level playing field for foreign companies in the market.

Tesla, the world's largest seller of fully electric cars, has been lowering prices in key markets, including the US and China. Despite disappointing earnings, the company recently announced plans to launch more affordable EV models later this year, garnering investor optimism.

Musk lauded the efforts of Tesla's Chinese team and highlighted the productivity of the company's Shanghai factory, established in 2019. The factory is currently Tesla's most productive plant globally.

In related news, it was reported that Tesla eliminated all Chinese graduate offers in its latest round of job cuts, as per media sources in China.