Zoë Schiffer inquired about the nature of Tesla’s relationship with China and the company’s current status in the Chinese market, raising the question of whether Tesla remains a popular and trendy option there. Zeyi Yang responded that Tesla maintains a certain prestige as an American electric car company, largely due to a long-standing perception of Chinese auto brands as inferior to their foreign counterparts. However, this impression is gradually changing. Yang elaborated on the historical relationship between Tesla and China, pointing out the significant figure of Zhuanglong, the former Chinese Minister of Industry and Information Technologies, who played a pivotal role in the early days. Zhuanglong, an enthusiast of electric cars due to his background in the auto industry, had tried one of Tesla’s roadsters during a visit to San Francisco in 2008. This marked the beginning of Tesla’s connection with China. Elon Musk’s first visit to China in 2014 and the subsequent establishment of the Gigafactory in Shanghai in 2020 further cemented this relationship. Currently, China stands as one of Tesla’s most productive facilities and significant markets, underscoring its importance to the company.
Schiffer remarked on the contrast between Tesla’s success in China and the challenges faced by other U.S. tech companies like Google and Meta. Yang explained that Tesla’s focus on electric cars, rather than social media, allowed the company to circumvent the stringent control China exercises over information and the internet. Moreover, China’s strategic interest over the past two decades in advancing electric vehicles as a future mode of transportation played a role in welcoming Tesla. This partnership has been instrumental in developing China’s burgeoning electric vehicle sector.
Schiffer further explored China’s heavy investment in electric vehicles, partially motivated by a desire to reduce dependency on foreign oil imports. Yang confirmed that these efforts have been progressing well. China, lacking substantial oil reserves, has been conscious of the geopolitical risks associated with oil importation, especially in potential wartime scenarios. As early as the 2000s, the prospect of electric vehicles was seen as a “moonshot” that could ensure energy security. Government support through research funding and subsidies for electric vehicles contributed to the growth of a thriving market. Current statistics indicate that more than 50 percent of Chinese consumers now prefer electric cars over traditional gasoline-powered vehicles, marking a significant shift in consumer behavior.
