Automotive companies in China are increasingly working on electric cars. Although it has the potential to become a competitor, the phenomenon was welcomed by Tesla CEO, Elon Musk, and he even gave praise.
According to Elon, Chinese car companies are the most competitive in the world. "I have high respect for the many automakers in China who are pushing for electric car technology," he said.
He added that automotive companies from the Bamboo Curtain country are also apparently able to create quality vehicle software and may provide great benefits in the future.
Tesla's competitors from China, for example, Nio and XPng, are indeed getting better in technology. Meanwhile, China is one of the most important markets for Tesla where they have a factory there and their products are selling well.
The Tesla factory opened in the Shanghai area in 2019. China seems to want to show that businesses from abroad can still freely take part in its market.
But lately, Tesla has been hit by bad news quite often so that it has affected its reputation in China more or less. For example, in April, a woman came to Tesla at an auto show in Shanghai complaining that her brakes were broken and had not been repaired.
The news trended on Chinese social media and state media called Tesla arrogant. Recently, Tesla is also being watched over data privacy. So Tesla should have suppressed this unfavorable situation.
They have, for example, recruited leading automotive influencers to improve their image in China. And now, Elon Musk does not hesitate to praise the country's electric vehicle industry.
