Tesla’s increasing dependence on China: The risks and benefits of special privileges in a highly competitive market.

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

In a highly competitive electric vehicle market, Tesla has found itself increasingly reliant on low production costs in China, which accounts for over half of its global deliveries. This is due to the special privileges granted to Tesla by the Chinese government, which included 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.

While these perks have allowed Tesla to establish a strong presence in China, critics argue that Musk’s close relationship with China’s government may leave him vulnerable to leverage from Beijing. This concern has been raised by US lawmakers, who are particularly concerned about Musk’s 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 this, Tesla, SpaceX, and Musk have not provided any comment on the matter. Business Insider has also reached out to the companies for comment on the matter.

Leave a Reply