Elon Musk, who runs publicly-traded companies Tesla, SpaceX, and Twitter, is planning a visit to China and seeking a meeting with China’s Prime Minister Li Qiang as early as April. The information on this visit has already set the stock market in motion. If the business trip goes as scheduled, the shares of his companies will make an explosive jump. If the meeting proves to be efficient, a rapid rally is out of the question.
The first step has been made as Elon Musk has obtained a preliminary agreement from the Premier. The date has not been fixed yet, but the entrepreneur is eager to spare time in his tight schedule for the landmark visit. Interestingly, Elon Musk does not make a secret of his intention to meet China’s Premier, but the agenda and his purposes are not disclosed. For the American billionaire, this visit to China would be the first since the COVID pandemic. Elon Musk used to host the head of the Chinese government at the event in 2019 when he opened a facility in Shanghai, Tesla’s largest production hub. In 2020, both Musk and Li Qiang participated in an online conference and the high-tech mogul thanked the Premier for supporting the plant’s operation during the COVID challenge.
Analysts are currently trying to figure out the underlying reasons for the meeting in China. They suggest a variety of versions ranging from incredible, like permission to launch Twitter, to realistic related to Tesla’s issues in China. The electric carmaker has to delay the implementation of its plans to double the production output at the facility in Shanghai. Besides, the company has not gained the authorities’ approval to introduce self-driving technology. Whatever goal is pursued, one thing is certain: if the event takes place all right, it will give a powerful impetus to the securities of all companies belonging to Musk.
