Tesla shares rise as Elon Musk meets with China's foreign minister

Shares of Tesla roseate Tuesday aft the electrical carmaker's CEO Elon Musk met with China's Foreign Minister Qin Gang.

It comes arsenic Beijing is pushing to amusement it is unfastened to overseas business, and arsenic Musk reportedly signaled further enlargement of his car company's concern successful China.

Qin, who was until precocious China's ambassador to the U.S., said "Chinese-style modernization," characterized by a immense colonisation and "common prosperity" volition make "unprecedented maturation imaginable and marketplace demand," according to a connection from the Chinese overseas ministry.

He added that China's electrical conveyance marketplace "has wide prospects for development" and that China volition proceed to unfastened up and make a amended market-oriented and law-based concern situation for overseas firms similar Tesla.

According to the Chinese overseas ministry statement, Musk praised Chinese the Chinese radical and China's achievements. Tesla opposes "decoupling" and is consenting to proceed to grow its concern successful China, the connection said.

Shares of Tesla jumped 5% soon aft markets opened Tuesday, earlier aboriginal paring gains. As of 10 a.m. ET, the banal was trading astatine $202.93, up 2.6% for the session.

Tesla did not instantly respond to a CNBC petition to verify the Chinese overseas ministry's statement.

The gathering betwixt Musk and Qin comes astatine a clip of continued tensions betwixt the U.S. and China implicit technology. Last year, Washington enacted sweeping export restrictions connected cardinal chips and semiconductor instrumentality to China, successful a determination that could hobble's Beijing's attempts to boost its home manufacture successful a captious technology.

This month, Chinese regulators barred operators of "critical accusation infrastructure" successful China from buying products from U.S. chipmaker Micron.

The Chinese overseas curate connected Tuesday said that a "constructive" U.S. and China narration is successful the involvement of some countries and the world.

On Tesla's side, Musk's sojourn of Tuesday comes arsenic the institution faces heightened contention and a terms warfare successful China. Tesla has been adjusting the prices of its cars successful China amid a tougher macroeconomic situation successful the world's second-largest economy.

The Chinese overseas ministry connection did not proviso overmuch item connected what was discussed betwixt Musk and Qin. China is Tesla's second-biggest market, and Musk has sought to support bully relations with Beijing. The billionaire has pledged investments implicit the years and praised the country's technology.

"China rocks successful my opinion," Musk said successful 2020.

Tesla's biggest car accumulation mill is successful the Chinese mega-city Shanghai, and the institution successful April announced plans to physique different works locally to manufacture its Megapack vigor retention system.