Tesla's shares recently spiked following CEO Elon Musk’s meeting with China’s Foreign Minister Qin Gang earlier this week, according to a recent CNBC report.
Serving as one of Beijing’s efforts to accept foreign business, and Tesla’s efforts to further expand in China, the meeting between Musk and Qin is scheduled amid continued technology-related tensions between the U.S and China.
Tesla's shares spiked by 5% shortly after markets opened on the last Tuesday of the month. At approximately 10 a.m. ET, the stock was trading at $202.93, up 2.6% for the session.
During the meeting, the company, based in Texas, confirmed its opposition to decoupling, and willingness to continue expanding its operations in China, a recent statement from the Chinese foreign ministry reveals.
According to a report recently released by the Chinese foreign ministry, Qin, formerly China’s ambassador the U.S, admitted that the “Chinese-style modernization,” will lead to “unprecedented growth potential and market demand," adding that “China’s electric vehicle market ‘has broad prospects for development’ and that China will continue to open up and create a better market-oriented and law-based business environment for foreign firms like Tesla.”
“According to the Chinese foreign ministry statement, Musk praised the Chinese people and China’s achievements,” the CNBC report stated. “Tesla opposes “decoupling” and is willing to continue to expand its business in China.”
The meetings follow Chinese regulators’ decision to place a nationwide ban keeping operators of “critical information infrastructure” from buying from U.S. chipmaker Micron.
“The meeting between Musk and Qin comes at a time of continued tensions between the U.S. and China over technology,” a recent press release states. “Last year, Washington enacted sweeping export restrictions on key chips and semiconductor equipment to China, in a move that could hobble’s Beijing’s attempts to boost its domestic industry in a critical technology.”