Elon Musk, CEO of Tesla Inc. TSLA, has landed in Japan for his first known visit in nine years.
What Happened: The tech billionaire announced his arrival in Japan through a post on X, formerly Twitter, on Thursday evening local time.
His last visit to Japan was in 2014, when he finalized an agreement with Panasonic Holdings Corp. PCRFY for a U.S. battery factory, reported Bloomberg.
Musk shared videos from TeamLab, an interactive art exhibit in Tokyo, on Friday.
This is Musk’s second trip to Asia this year, following his visit to China, where he met with government officials and visited Tesla’s Shanghai factory.
Japan’s major automakers, including Toyota Motor Corp. TM, have lagged behind dedicated EV makers like Tesla and China’s BYD Manufacturing Company Limited BYDDY BYDDF in the electrification race.
Tesla, however, has had to cut prices in key markets amid rising interest rates, sparking concerns of a potential price war in China’s auto market.
Why It Matters: Musk’s visit to Japan comes amid significant developments that may impact Tesla’s operations and overall EV market dynamics.
In 2022, Japan raised concerns about a potential drop in revenue due to the increasing shift towards EVs. The country has also previously considered raising taxes on electric vehicles, which could have an impact on Tesla’s market position.
Further, Japan’s declining birthrate has been a serious concern for the nation, with the number of households with children falling below 10 million in 2022. Musk previously commented on this demographic challenge, stating it poses a risk to civilization.
Additionally, Japan has the second-highest number of X users at 58.95 million behind the United States, according to January 2022 data from Statista. The U.S. has 76.9 million users.
The Tesla CEO’s visit also follows a recent incident involving a fake X account impersonating Japan’s top diplomat Masato Kanda.
With these factors in the backdrop, Musk’s Japan visit could significantly shape Tesla’s regional strategy and relations.
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