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"China also needs to accumulate more technologies and practical solutions to produce batteries for electric vehicles in a cheaper way and handle old batteries in a sustainable way," he said.

"China is the victim of US trade bullying," he added.

"China is pretty big geographically, so it may make sense to have factories in other parts of China in order to reduce logistics costs," said Musk at Tesla's annual shareholder meeting in Mountain View, California. "The faster you scale, the more cash you have."

"China calls on the US to treat Chinese companies in an objective and fair manner," Geng said in the statement, adding that the country will firmly defend the legitimate interests of Chinese enterprises.

"China has seen developments over the past few years that are very beneficial for investors. We see potentially further positive developments ahead," she said.