Musk's visit to China has paid off, and his market value has skyrocketed by 684 billion overnight, and there is a reason why he missed the invitation from India 

Zhang He in Egypt

2024-04-30 11:27Posted in Egypt International News Reporter

A few days ago, Musk also announced that he could not visit India as scheduled due to busy business and other reasons, but he quickly visited China only a few days later. Why would he rather ask Modi to do this? Why did Tesla's market value skyrocket by 684 billion in one day?

According to a report by the "Daily Economic News" on April 30, Musk, who came to China to participate in a number of activities, only stayed for less than 24 hours in total, but the results received were extremely amazing. On April 29 alone, Tesla's share price broke through the $197.96 mark, up more than 17%, with a total market value of $631.3 billion, an increase of nearly $94.6 billion (about 684 billion yuan) from the previous trading day. 

Such a huge increase, in addition to Tesla's low base caused by factors such as layoffs and sales less than expected some time ago, is directly due to the fact that the market feels a signal conducive to Tesla's expansion. According to the analysis of Reuters and practitioners in related fields in China, Musk's visit to China is mainly to promote the implementation of the autonomous driving (FSD) system in China, and it is very likely that it has achieved results, but it has not yet been announced.

For Tesla, which has been in a downturn recently, this is undoubtedly a shot in the arm, and it also highlights the significance of Musk's visit to China and the importance of the Chinese market. Tesla has long been plagued by production capacity problems in the past, which greatly affected the scale of the company's expansion, and this situation was not greatly alleviated until the opening of Tesla's Shanghai factory, and it can be said that the Chinese market and the support for its Shanghai factory laid the foundation for Tesla's current scale. Now, allowing the implementation of the self-driving (FSD) system in China has taken Tesla's business to the next level.

But China is not simply paying in this regard. Through the introduction of Tesla's "catfish effect", the competitiveness of China's local new energy vehicle companies has been greatly improved, and they have even been able to compete with Tesla in terms of product strength. As for the data privacy issues that everyone is concerned about, Tesla has always understood the bottom line in terms of making money, and has prepared a data storage center in China as early as possible, and even has to introduce third-party companies to supervise itself, which is similar to another American Apple company that has made a lot of money in China.

A few are happy and a few are sad, but when China and Tesla are win-win, India can only sigh. "Hindustan Times" and "Times of India", two first-tier media in India, have reported on this matter with the headline "Musk announced that he will visit China a few days after announcing the postponement of his visit to India". About a week ago, Musk announced that he could not visit India because of his busy business, and he missed the appointment with Modi. This kind of different attitude towards China and India is very revealing, but the Indian media and people do not like to listen to it.

To put it simply, Musk as a businessman is bound to pursue profits, and the media, including Phoenix Satellite TV and Jimu News, have used "sudden" and "urgent" to describe Musk's visit to China, and the reason why he is in such a hurry to come to China has been exposed by Tesla's skyrocketing market value. India is not Tesla's main market after all, and Modi's invitation cannot make Musk much more money. 

This incident profoundly reflects the difference in the attractiveness of China and India to foreign investment, and also explains the reason why the various sanctions imposed by the United States on China are difficult to touch the root cause. China's market of 1.4 billion people is here, and its consumption power and market are comparable to those of the whole of Europe. No matter how much the US government sanctions, it cannot stop these companies from pursuing profits, and the famous chip company Nvidia has even deliberately launched a special version of its products for China in order to bypass US sanctions. This kind of economic and trade exchanges is the insurmountable mountain of Biden's various sanctions.

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Personal opinion, for reference only