Elon Musk’s Close Ties with China: Balancing Business and Politics in the EV Industry

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

During a visit to Shanghai, Elon Musk was granted permission by the Chinese government to establish a Tesla plant in the country. However, critics warn that this may leave him vulnerable to Beijing’s influence. According to The New York Times, Musk’s close relationship with China’s government has been described by former Tesla employees, diplomats and policymakers.

As part of the agreement between Tesla and China, low-interest loans were offered, as well as a new emissions credit policy that benefited Tesla. Additionally, ownership rules were changed to allow Tesla to set up without a domestic partner. This has led the Shanghai plant to account for over half of Tesla’s global deliveries, making it increasingly dependent on low production costs in China in an extremely competitive electric vehicle market.

With China developing its own strong EV industry, Tesla faces challenges in the market. There are concerns about Musk’s dependence on China, especially considering his ownership of SpaceX and its valuable Pentagon contracts. Although Musk has emphasized that his companies are separate entities, he has shown support for China on various issues including Taiwan.

Tesla, SpaceX and Musk have not provided comment on this matter to The New York Times or Business Insider who also reached out for comment from the companies regarding this issue.

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