Musk admits mistake, "returns" to Zhu Xiaotong

At the beginning of the article, let's first bring our memory back to the end of 2022.

At that time, there was suddenly someone on the internet who revealed that the "workaholic" Musk decided to officially appoint Zhu Xiaotong as the global CEO of Tesla, and the former's original position would be the global vice president of Tesla and the president of Greater China.

The news quickly caused a sensation.

If confirmed, Zhu Xiaotong, who is in this globally hottest new energy vehicle company, undoubtedly completed a thorough promotion from a branch to the headquarters.

As an onlooker, one can't help but exclaim, "Ability and luck are equally important."

In fact, looking back at Zhu Xiaotong's resume, it can't be considered particularly outstanding, but every step was taken very correctly.

According to public information, she was born in Shenyang, Liaoning Province, graduated from Auckland University of Technology in New Zealand, and then went to the Fuqua School of Business at Duke University in the United States to obtain an MBA degree.

Before joining Tesla, she was involved in the founding of Kebao International, engaged in property management and engineering implementation work, but had no experience in the automotive industry.

Then, in April 2014, Zhu Xiaotong chose to join Tesla and served as the director of the China Supercharger Project, responsible for the expansion of the charging network.

Unexpectedly, a few months later, due to the former president of Tesla Greater China, Wu Bixuan, choosing to resign abruptly due to the far less than expected results of the new product launch in China, Zhu Xiaotong took over her position.

The real "amazing" thing is that he personally led the signing, construction, and completion of the Tesla Shanghai factory. When Tesla was on the brink of bankruptcy and Musk was increasingly troubled, the "timely help" of this factory undoubtedly proved to be extremely precious.

It can even be said that with his own efforts, he pulled the company back from the brink and truly ushered in a "turning point".

The credit undoubtedly belongs to Zhu Xiaotong.

It is precisely against this background that, on April 7, 2023, Beijing time, according to the shareholder proxy statement submitted by Tesla to the U.S. Securities and Exchange Commission, Zhu Xiaotong has been formally appointed as the Senior Vice President of Automotive Operations as part of the restructuring of the senior management team, making him one of the four senior executives of Tesla.

At this point, everything is settled, and Zhu Xiaotong has officially completed his transformation.

But at this moment, only about 400 days have passed since the above appointment, and the situation has suddenly changed. This "number two figure" who closely followed Musk is facing the risk of being "reassigned".

Because, just yesterday, combined with the latest revelations, Zhu Xiaotong is about to return to Tesla China, resume the position of Vice President of China, and once again be responsible for Tesla's production and sales in the Greater China region.

The news has once again sparked intense discussions.

As for the reasons behind the appointment, the most widely agreed upon explanation is to ensure the smooth entry of the American new energy vehicle company FSD into the Chinese market.

After all, with Elon Musk's sudden visit before the May 1st holiday, positive signals have already emerged.

Among them, the most significant evidence is the announcement made by the China Association of Automobile Manufacturers and the National Computer Network Emergency Response Technical Team/Coordination Center on the evening of April 28th, Beijing time, regarding the testing of four safety requirements for automobile data processing (first batch).

The content shows that all models produced at Tesla's Shanghai Gigafactory meet the compliance requirements and it is the only foreign-funded enterprise that meets the compliance requirements.

In other words, Tesla has passed the authoritative standards and requirements for national vehicle data security, which is conducive to fully lifting restrictions on its intelligent vehicles (such as government agencies, airports, highways, etc.).

Looking deeper, it can be said that this American new energy vehicle company has largely cleared many obstacles for FSD's landing in China through continuous efforts. Musk's sudden arrival has also had an immediate effect, completely resolving the constraints of "compliance."

The reason why Tesla is so urgent is also very simple. Whether FSD can be widely promoted globally in the next step, especially in the strategically important Chinese car market, will be the key to its emergence from the trough, breaking through the haze, and clearing obstacles.

In the first quarter of 2024, Tesla's revenue and net profit both declined, and deliveries were significantly lower than Wall Street's expectations, with only 386,800 vehicles, a year-on-year decrease of 8.3% and a quarter-on-quarter decrease of as much as 20.1%.

Therefore, in order to sell more cars and make more money, there is no room for error with FSD.

Moreover, taking Tesla's situation in the Chinese car market as an example, it must be acknowledged that due to some internal and external troubles, the once proud technological advantage is being continuously eroded, and the once very dazzling brand halo is being rapidly consumed. FSD is also needed to slowly regain these two lost elements.

One of the missions that Zhu Xiaotong shoulders after being "reassigned" is to escort all these details.

Of course, in addition to ensuring the smooth landing of FSD in China, the change in the former's identity is undoubtedly a tacit admission of Musk's mistake.

So, why has Tesla in 2024 become so difficult?

In my opinion, the fundamental reason is closely related to the serious setbacks faced by this American new energy vehicle company in the Chinese car market. Regardless of brand, product, marketing, or even service, Tesla is under siege by formidable competitors.

To make matters worse, since the departure of Zhu Xiaotong, the pain points have been consistently covered up and remain unresolved. Musk's increasingly scattered focus and multiple roles have caused him to lose his once keen perception and efficient decision-making abilities.

Caught in a vicious cycle, Tesla has been losing ground that it should not have lost, with the backlash affecting the global market.

On the other hand, since Zhu Xiaotong's promotion to the United States, he has not replicated his previous success in helping Musk further advance in the globalization strategy. Instead, he has been reluctantly mired in a systematic quagmire, causing him to be somewhat hesitant and even giving off a sense of "neglecting one thing in favor of another."

In short, to put it in simple terms: "What was thought to be good steel for use on the cutting edge turned out to be mismatched in the end."

Fortunately, with Zhu Xiaotong being "sent back," positive signals are emerging. While admitting his mistakes, Musk is also increasingly realizing that "the Chinese car market cannot afford to lose, and we cannot afford to lose in it."

Next, let's wait and see how Zhu Xiaotong, back in familiar territory, will navigate the increasingly treacherous and harsh environment, and whether he can lead Tesla to reclaim what has been lost...