China granted Elon Musk special permission to establish a Tesla factory there, but The New York Times noted that this could expose him to pressure from Beijing.
According to former Tesla employees, diplomats, and lawmakers, Musk and China’s government have a mutually beneficial relationship, as The Times quoted on Wednesday.
According to the research, China provided Tesla with low-interest loans, a new emissions credit scheme from which Tesla benefited, and altered ownership regulations to enable Tesla to establish itself without needing a domestic partner.
Currently, the facility handles over half of Tesla’s worldwide deliveries. The firm increasingly relies on China’s low car production costs in a highly competitive EV industry.
Tesla is trailing behind China as it develops a more robust electric vehicle market. According to the survey, Tesla’s presence in China helped propel the country’s EV business by encouraging innovation in essential areas.
Congressmen from the United States are worried about Musk’s reliance on China, especially since he owns SpaceX, a satellite business with significant Pentagon contracts. Musk has made it clear that his businesses are independent organizations.
