Elon Musk says Tesla is glad to see new data-security laws after several Beijing-led regulatory crackdowns on big tech

A screen shows Tesla CEO Elon Musk speaking during 2021 World New Energy Vehicle Congress at Hainan International Convention and Exhibition Center on September 17, 2021 in Haikou, Hainan Province of China
China is one of the most lucrative markets for Tesla.

Tesla is glad to see new laws relating to strengthening of data management, Elon Musk said at China’s World Internet Conference on Sunday.

Musk didn’t specify that his remarks related to China’s strict data protection law, but said Tesla’s data centre in the country localizes all data generated for business there.

Beijing has been moving to tighten regulation for several months to rein in the power of big tech.

The nation’s Personal Information Protection Law, set to be implemented on November 1, lays out a set of rules around better storage of user data and conditions under which companies can gather data, including obtaining prior consent.

“Data security is key to the success of intelligent and connected vehicles,” Musk said in prepared remarks to the summit. “And it’s not only closely linked to an individual’s interests, but also matters to the whole society.”

“At Tesla, we are glad to see a number of laws and regulations that have been released to strengthen data management,” he said.

“All personally identifiable information is securely stored in China without being transferred overseas,” he said, about the company’s handling of data. “Only in very rare cases, for example, spare parts, order for overseas is data approved for transfer internationally.”

He added that he believed data protection was not only an issue of one single company and should be a mutual effort for all industry players. “We’re working with regulators on finding the best solution for data security,” he said.

China is one of the most lucrative markets for Tesla, contributing 30% of total sales for the EV maker in the second quarter this year.

At Sunday’s summit, China’s Vice-Premier Liu said President Xi Jinping has promised to work with countries around the world to shape a vibrant digital economy and build on effective supervision.

Other US business leaders that participated via video in the event were the recently appointed CEOs of Intel and Qualcomm, Pat Gelsinger and Cristiano Amon.

Musk’s collaborative tone came despite the rough patch that the tech sector in China is enduring. The country’s richest tech titans, including Jack Ma and Pinduoduo’s Colin Huang, have had billions wiped off their personal wealth as a result of investors reacting to Beijing’s strict new rules.

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Tesla challenger Xpeng’s new P5 sedan will start at $24,670, more than a third less than the basic Model 3

Photo by BRITTA PEDERSEN:POOL:AFP via Getty Images
Elon Musk’s Tesla has faced a string of setbacks in China.

  • Xpeng just revealed the pricing for its P5 electric sedan, which starts at $24,670.
  • Tesla’s Model 3 sedan starts at $38,700 in China.
  • China is the world’s largest car market and accounted for a fifth of Telsa’s revenues last year.
  • See more stories on Insider’s business page.

One of Tesla’s closest rivals in China has revealed the pricing for its new electric sedan – and it’s undercutting Tesla’s Model 3 by more than a third.

Xpeng will sell six versions of its upcoming P5, priced between 160,000 yuan ($24,670) and 230,000 yuan ($38,550) after subsidies. Tesla’s Model 3, by comparison, costs from 250,900 yuan ($38,700) in China after subsidies, with a higher-end version priced at 339,900 yuan ($52,400).

China is the world’s largest car market and demand for electric vehicles is booming thanks in large part to generous government subsidies for “green” cars.

Tesla made around a fifth of its global revenues in China last year but it’s facing increasing competition from local rivals such as Nio, Li Auto, and Xpeng.

Read more: Rivian-rival Lucid’s CEO thinks the EV industry is due for a brutal shakeout because startups are missing one key ingredient

Xpeng says the P5 is semi-autonomous with 32 perception sensors, including 13 high-definition cameras alongside light detection and ranging (Lidar) technology, which uses lasers to measure the distance, shape, and orientation of objects.

The P5 has a top speed of 105.6 miles per hour and can accelerate from 0 to 62 miles per hour in 7.5 seconds. Its estimated cruising range starts at 286 miles, rising to 373 miles for the more expensive models.

Xpeng launched pre-orders for the P5 in April and said that it expects to start deliveries in the fourth quarter of 2021.

The P5 is Xpeng’s second sedan. It started deliveries of its pricier sports sedan, the P7, in June 2020. It also sells the G3, a long-range smart SUV.

The P5 pricing announcement from Xpeng comes as Elon Musk’s electric vehicle giant Tesla struggles in China.

Tesla suffered a huge sales hit in China in April after a string of crises. These included a meeting with Chinese regulators over quality issues like unintended acceleration and battery fires, reports that Chinese officials had restricted the use of Teslas among government personnel over their built-in cameras, and a protest at the Shanghai auto show because of apparent quality-control issues related to the automaker’s brakes.

Tesla’s sales bounced back in May – but it then had to recall 285,000 cars in June for a remote software update because drivers were accidentally turning on its Autopilot feature.

While Tesla is struggling with its reputation in China, Xpeng is reporting record growth.

Xpeng said that it delivered 30,738 vehicles between January and June, an increase of 459% year-over-year, including record monthly deliveries of 6,565 vehicles in June. This was made up of 4,730 P7s and 1,835 G3s.

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Tesla unveils 3,100-mile Supercharger route across China as part of Musk’s plan to connect Shangai and London

Tesla supercharger
Elon Musk wants to create a charging route that stretches from Shanghai to London.

  • Tesla unveiled a Supercharger route stretching more than 3,000 miles along China’s Silk Road.
  • The route includes 27 Supercharger stations.
  • Elon Musk wants to eventually build a route spanning Shanghai to London.
  • See more stories on Insider’s business page.

Charging remains one of the biggest headaches of EV ownership – and Tesla just made it a bit easier for its Chinese customers to take long road trips with a new Supercharger route.

The electric-vehicle maker announced Sunday that it opened a Supercharger route stretching more than 5,000 kilometers – over 3,100 miles – along the Silk Road. Tesla has built 27 charging stations along the route, which it says is now the longest East-West Supercharger route in China.

It’s part of Elon Musk’s plan to establish a charging route spanning more than 6,000 miles from Shanghai to London, the company said. To accomplish that, it would need to fill gaps across Central Asia, the Middle East, and Eastern Europe

Tesla China tweeted out a promotional video announcing the route.

Tesla’s extensive charging network, something no other company has, is one of the key advantages of buying a car from it over a competitor in the US. Elon Musk is looking to replicate that range anxiety-eliminating network in China, one of Tesla’s most critical markets. Tesla has deployed some 800 Supercharger locations in China to date.

Read more: The head of Toyota’s VC arm has $300 million to spend on startups. Here’s what he’s looking for before he offers terms.

The move to bring Supercharging to one of China’s cultural landmarks may also be part of an effort by Tesla to smooth over its image in the country after a string of public-relations crises. This year in China, Tesla has faced protests and calls from officials to ban its cars on government property.

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Tesla could rally to $1,000 this year as demand from China remains strong and the global chip shortage subsides, Wedbush says

Tesla Model 3
Tesla Model 3

Tesla could roar higher in 2021 as demand looks strong so far and the global semiconductor chip shortage will only be a temporary setback for the EV giant.

That’s according to Wedbush’s Dan Ives, who has an “outperform” rating for the stock and price target of $1,000, a nearly 49% jump from current levels.

In a Monday note, the senior technology analyst noted three “perceived headwinds” that Tesla is facing right now: the chip shortage, political blowback in China from recent safety issues, and rising electric-vehicle competition around the globe.

As Elon Musk appeared on SNL, Lucid Motors, Ford, and Volkswagen all showcased their flagship eclectic vehicles in separate advertisements during the broadcast. But Ives said that Tesla remains the leader in the market, and underlying consumer demand looks robust in China and Europe.

“The main line in the sand now for the bulls and bears is not the near-term chip shortage in our opinion (which is temporary), but rather Tesla’s ability to further penetrate China,” Ives said. “Now it’s about Musk playing nice in the sandbox which appears to be happening over the last few weeks around safety issues and making sure that Tesla does not see any stumbles/government crackdown in China which is poised to represent 40%+ of global deliveries by 2022.”

The analyst estimated that Tesla appears to be able to comfortably exceed 200,000 delivery units in the second quarter, even factoring in the chip shortage. For the next few months, Ives is keeping an eye on Tesla’s Model Y production and demand, the Model S and X makeovers, and Tesla’s higher margin software and FSD (full self-driving) purchases.

Ives said he is still bullish on the EV sector despite the risk-off selling the industry has faced over the last few months. Shares of Tesla slipped 3% Monday morning to $651.59, and the EV giant is down over 5% year-to-date. Meanwhile competitors Fisker and Nikola are both down more than 23% in the same time period, and Lordstown Motors has tumbled 60% in 2021 amid short-seller reports.

Read more: Credit Suisse says buy these 15 stocks that represent its analysts’ ‘highest-conviction’ calls and are set to outperform despite the market’s doubts

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