Tesla’s Unprecedented Ties to China: How Special Privileges Have Made the Company Even More Dependent on Beijing

Elon Musk’s Vulnerability Exposed by China’s Favors: New York Times

In a trip to Shanghai, Elon Musk was granted special privileges by the Chinese government to set up a Tesla plant in the country. However, critics argue that this may leave him vulnerable to leverage from Beijing. The New York Times reported that Musk’s close relationship with China’s government has been described by former Tesla employees, diplomats, and policymakers, with concessions offered by the Chinese government to facilitate the construction of the Tesla plant in Shanghai starting in 2019.

Among the perks offered to Tesla by China were low-interest loans, a new emissions credit policy that benefited Tesla, and changes to ownership rules that allowed Tesla to set up without a domestic partner. As a result, the Shanghai plant now accounts for over half of Tesla’s global deliveries, making the company increasingly reliant on the low production costs in China in a highly competitive electric vehicle market.

With China building its own strong EV industry, Tesla finds itself facing challenges in the market. Concerns have been raised by US lawmakers regarding Musk’s dependency on China, especially considering his ownership of SpaceX, a satellite company with valuable Pentagon contracts. Musk has emphasized that his companies are separate entities but has shown support for China on various issues including Taiwan.

Tesla, SpaceX and Musk have not provided any comment to The New York Times or Business Insider about this matter.

In a trip to Shanghai, Elon Musk was granted special privileges by the Chinese government to set up a Tesla plant in the country. However, critics argue that this may leave him vulnerable to leverage from Beijing. The New York Times reported that Musk’s close relationship with China’s government has been described by former Tesla…

Leave a Reply