The New York Times report reveals that Tesla’s CEO, Elon Musk, received preferential treatment from Chinese officials during the establishment of Tesla’s Shanghai plant, potentially exposing him to Beijing’s influence.
Chinese policies were reportedly altered to accommodate Tesla, including the provision of low-interest loans, modifications to emission credit policies, and permission for Tesla to operate without a local partner.
Tesla’s Shanghai plant, its inaugural gigafactory outside the US, dispatched 947,000 vehicles in 2023, marking a 33% increase from the previous year. Additionally, the plant contributed over 1.8 million electric vehicles to the market in the same period.
China’s burgeoning electric vehicle market makes it an attractive location for Tesla’s cost-effective production. Moreover, Beijing’s support for Tesla extends to bolstering its own electric car industry.
However, concerns arise among US lawmakers regarding Musk’s close ties with China, especially as his other venture, SpaceX, maintains contracts with the Pentagon. This interwoven relationship raises apprehensions about potential conflicts of interest and foreign influence.
