Elon Musk’s Ties to China Make him Vulnerable: NYT

Elon Musk’s Special Privileges in China Raise Concerns Over Leverage and Dependence on Beijing

The CEO of Tesla, Elon Musk, has reportedly received special privileges from the Chinese government to set up a plant in China. This news has sparked concerns among critics that this relationship could leave Musk vulnerable to leverage from Beijing. According to The New York Times, Musk’s close ties with the Chinese government included concessions such as low-interest loans and changes in ownership rules to facilitate the setup of the plant in Shanghai in 2019.

Today, the China plant accounts for more than half of Tesla’s global deliveries, making the company increasingly reliant on the low production costs in China’s competitive electric vehicle market. However, Tesla is facing challenges as China has been building its own strong EV industry. Musk’s close relationship with China has also raised concerns among US lawmakers, particularly in light of his ownership of SpaceX, a satellite company with valuable Pentagon contracts.

Musk has been known to express pro-China views on controversial issues such as Taiwan and has praised the country’s leaders. Despite these allegations raised by The New York Times, there has been no official comment from Tesla, SpaceX or Musk on this matter. Business Insider has reached out to these companies for comment.

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