Tesla (NASDAQ: TSLA) shares gained Tuesday. On Monday, Reuters reported a private jet used by CEO Elon Musk arrived in China. Musk is expected to meet with senior Chinese officials and visit Tesla’s Shanghai plant, Reuters said. Last Thursday, Tesla and Ford (NYSE:F) announced a partnership giving Ford owners access to Tesla Superchargers.
China's foreign ministry said in a general statement that the government welcomed Musk and other business leaders and is looking to promote mutually beneficial cooperation. Musk is also anticipated to stop in to visit the Shanghai Gigafactory.
The trip has been expected with initial reports in March indicating that Musk was planning a trip to China and was seeking a meeting with Chinese Premier Li Qiang.
Weighing in on the development, Wedbush Securities analyst Dan Ives said playing nice in the sandbox in Beijing is something the Street is "laser focused" as analysts weigh the risk of potential disruptions to Tesla's expansion in the top electric vehicle market in the world. Wedbush has an Outperform rating on TSLA and price target of $215.00.
Tesla's network of fast chargers is the largest in North America, and access for Ford owners could help Ford ramp up its EV business more quickly. For Tesla, it's a way to expand what is already becoming a meaningful part of its business.
TSLA popped $5.95, or 3.1%, to $199.12.
