Tesla’s Musk faces mixed China reception as EV competition narrows gap with TSLA

Elon Musk joined more than a dozen U.S. executives accompanying President Donald Trump to Beijing on May 14, 2026, as Tesla Inc. faces rising pressure from Chinese EV rivals and regulatory scrutiny in its largest overseas market. Tesla sold about 626,000 vehicles in China in 2025, ranking fifth in EV and plug-in hybrid sales, according to the China Passenger Car Association. China accounted for about 20% of Tesla’s revenue last year. Analysts said Tesla’s battery- and software-led vehicle design remains influential, while its self-driving technology is still viewed as a benchmark in China. Musk’s broader business interests have drawn concern in Beijing, particularly SpaceX’s Starlink satellite network and its military relevance after use in Ukraine. Tesla also faces pending regulatory clearance for wider deployment of its Full Self-Driving system in China. Past frictions include a 2021 consumer complaint controversy and restrictions on Tesla vehicles at military sites, later eased after data compliance assurances in 2024.