From Perks to Concerns: Elon Musk’s Dependence on China and Its Impact on His Companies

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

Elon Musk’s close relationship with China’s government has been described by former Tesla employees, diplomats, and policymakers. During a trip to Shanghai in 2019, the Chinese government granted Tesla special privileges to set up a plant in the country. Among the perks offered to Tesla were low-interest loans, a new emissions credit policy that benefited the company, and changes to ownership rules that allowed Tesla to set up without a domestic partner.

As a result of these concessions, 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. However, 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 he has shown support for China on various issues, including Taiwan. Despite requests for comment from The New York Times and Business Insider, Tesla, SpaceX

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