Elon Musk expected to visit China this week

Elon Musk, Tesla chief executive, is expected to visit China this week, three people with knowledge of the matter said, in what would be his first trip to China in three years.

He will meet senior Chinese officials and visit Tesla's Shanghai plant, two of the sources said.

It was not known who Musk would meet and what they would discuss. The people with knowledge of the trip declined to be named as the matter is private.

Tesla and China's State Council Information Office did not immediately respond to requests for comment.

In March, Reuters reported that Musk was planning to visit China and seek a meeting with Chinese Premier Li Qiang as early as April, with the exact timing subject to Li's availability.

Tesla's market in China is second-largest, and its Shanghai plant is Tesla's largest production hub.

The trip will mark Musk's first time in China, where he started the internet abuzz by dancing on stage during an event at Tesla's Shanghai factory in early 2020.

It will also come at a time when Tesla is grappling with various problems, such as increasing competition with Chinese automakers that are exporting their China-made electric vehicles as demand in the world's largest auto market weakens.

Tesla hasn't yet given any update on its plan to increase output by 450,000 vehicles a year at its Shanghai plant, although it announced in April it would build a factory in Shanghai to produce energy storage products.

The company has submitted plans to local authorities to expand the capacity for producing powertrains at the Shanghai plant to 1.75 million units annually.

China's state planner is grappling with a capacity glut in its auto sector with more than 100 players and has been cautions about approving new production capacity.

There are some limitations on our ability to expand in China, he told CNBC earlier this month. The same interview, Musk said tensions between the United States and China should be a concern for everyone. Tesla has launched a plant in Mexico that is expected to produce a low-cost electric car based on its next-generation platform.