The billionaire is trying to battle Tesla's problems by doubling down on China, but that risks creating other issues further down the track.

Elon Musk’s no.2 at Tesla, Tom Zhu, is going back to his responsibilities as VP of China as the CEO isolates himself at the top. Zhu has long been the leader of Tesla’s operations in China and led the very successful Gigafactory Shanghai effort.

As part of that effort, Tesla has been developing plans for a data center in China to train the algorithm needed for more fully autonomous vehicles, according two people, who asked not to be named because the work remains private.

Tesla's efforts underscore the speed of the electric vehicle maker's pivot to bet on a breakthrough in AI at a time when EV demand has slowed and its competition has deepened

Chinese smartphone maker Xiaomi has become the country's eighth-largest electric vehicle upstart after selling more than 7,000 units of its first model, the SU7 sedan, in April, according to industry data.

Xiaomi Corp. aims to begin making and selling a sport utility vehicle similar to Tesla Inc.’s Model Y as early as 2025, embarking on a major new expansion with production of its debut SU7 electric car set to reach about a 100,

Xiaomi has just unveiled its first electric vehicle, the SU7 sedan, but the company is already planning the next step. The Chinese tech giant known for its budget-friendly smartphones is buoyed by the success of its first EV and decided that it is time to take on the world’s best-selling car — the Tesla Model Y.

Xiaomi saw high demand for its SU7 sedan due to low pricing, with over 100,000 orders received. It's moving forward with plans for an SUV to compete against Tesla Model Y, aiming for repeat success. Affordable pricing remains crucial in selling EVs globally as the EV market cools.