Despite remaining a “tech idol” for many Chinese, Elon Musk is facing increasing pressure from rivals in the country of over a billion people and strategic concerns.

Billionaire Elon Musk at a state banquet with US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, on May 14. Photo: Reuters .

In China , Elon Musk has long been a figure of mixed feelings: he is both hailed as an icon of technological innovation and repeatedly criticized by regulators and the public for Tesla’s handling of customer complaints.

Furthermore, the dominance of SpaceX and the Starlink satellite network is also causing concern in the country. With the gap between Tesla and domestic electric vehicle manufacturers narrowing, the world’s richest billionaire faces the risk of declining influence and position in the Chinese market.

A “viral” moment at the Great Hall of the People.

Musk is currently among a group of more than a dozen American CEOs and business leaders accompanying President Donald Trump to Beijing for a summit with President Xi Jinping, along with Apple CEO Tim Cook and Nvidia CEO Jensen Huang. Most of the business leaders in the delegation are seeking to resolve disagreements with Beijing, and Musk is no stranger to the ups and downs of doing business in China.

Speaking to reporters as he left the Great Hall of the People on May 14th, after the official welcoming ceremony where he stood behind Trump’s cabinet along with 13 other CEOs, Elon Musk said he wanted to achieve “many good things” in China.

Later that evening, Xiaomi CEO Lei Jun – a long-time admirer of Musk and one of the first Tesla Model S owners in China – was spotted taking a selfie with the Tesla founder before the state banquet began at the Great Hall of the People in Beijing.

In a video that went viral on Chinese social media, Musk appeared somewhat weary at Lei Jun’s request for a photo. He raised his eyebrows and sighed before the picture was taken. Many Chinese netizens joked that the Xiaomi CEO had a moment of “disillusionment” in front of his tech idol.

Despite facing increasing pressure from domestic electric vehicle manufacturers in terms of both technology and pricing, Tesla – and Musk himself – still wields considerable influence in China. According to Kyle Chan, a China technology expert at the Brookings Institute, this is partly due to Musk’s interests aligning with Beijing’s technological priorities.

“When you look at China’s priority areas, many of the goals almost perfectly align with Elon Musk’s ambitions,” Chan observed, referring to electric vehicles, self-driving cars, artificial intelligence (AI), humanoid robots, brain-computer interfaces, and satellites.

He argued that Tesla’s self-driving technology is still considered the “gold standard” in the industry in China.

Many Chinese automakers are also openly learning from Tesla. Chery chairman Yin Tongyue told Reuters last month that the company draws inspiration from both Tesla and Toyota. According to him, Chery wants to combine Tesla’s innovative spirit with Toyota’s rigorous quality standards as it expands into the European market.

In 2018, Tesla became the first foreign automaker to be allowed to build a manufacturing plant in China without needing a joint venture with a local partner.

Last year, Tesla sold approximately 626,000 vehicles in China, becoming the fifth-largest automaker in the country by electric and plug-in hybrid sales, according to the China Passenger Car Association. The Chinese market accounted for about one-fifth of Tesla’s global revenue last year.

Tesla remains a symbol of innovation in China, but it also faces increasing pressure in the country amid fierce competition in the electric vehicle market. Photo: Reuters.

According to automotive analyst Felipe Munoz, Tesla’s design philosophy, centered around battery performance and software, has become a “major source of inspiration” for many Chinese automakers.

However, not every area within the “Musk empire” is welcomed by China.

Chinese military and diplomatic officials have repeatedly expressed concern over SpaceX’s near-monopoly position in the low Earth orbit satellite sector – a system that provides cheaper and more stable communication.

“Global Idol”

In China, Elon Musk has 2.3 million followers on Weibo and has been hailed by the country’s online media as a “pioneer,” “Brother Ma,” or “global idol.” Even Musk’s mother has become a celebrity in China.

This visit comes as Musk is seeking to purchase approximately $2.9 billion worth of solar panel manufacturing equipment from Chinese suppliers, according to Reuters in March. However, this plan could become complicated as Beijing considers restricting exports of advanced technologies to the US.

Elon Musk is considered a “technological icon” by many Chinese people, including famous celebrities. Photo: Reuters.

Tesla is also seeking approval from Chinese regulators to expand the deployment of its Full Self-Driving (FSD) driver assistance system.

For many years, Musk has had to maintain a careful balance in China – the world’s largest automotive market and a crucial link in the supply chain serving his business empire, which spans electric vehicles, solar energy, and space.

In 2021, Tesla was forced to apologize to Chinese consumers for its slow response to customer complaints. The incident erupted after a female customer climbed onto the roof of a Tesla at the Shanghai Auto Show to protest the company’s handling of a brake issue. The image went viral on social media and drew harsh criticism from Chinese state media.

Also in 2021, Tesla vehicles were banned from Chinese military zones due to concerns about data collected from in-car cameras. The ban was only lifted after Musk’s visit to China in 2024, when the automotive industry association confirmed that Tesla met data compliance requirements.

In the long term, the biggest challenge to Musk’s appeal in China may come from the strong rise of the domestic automotive industry.

“As Chinese companies catch up with or even surpass Elon Musk’s tech empire, his position in China may gradually fade,” said Chang Yan, founder of the popular electric vehicle blog Supercharged on Weibo.

“However, he will most likely remain an icon of China’s technology industry thanks to his achievements,” Yan added.