• Fri. May 24th, 2024

Elon Musk’s Close Ties with Chinese Government Raise Concerns over Vulnerability to Leverage

BySamantha Nguyen

Mar 28, 2024
Elon Musk’s Ties to China Make him Vulnerable: NYT

Elon Musk, CEO of Tesla, has been granted special privileges by the Chinese government to set up a plant in China. Critics have raised concerns that this close relationship with Beijing could leave Musk vulnerable to leverage from the Chinese government. The New York Times reported on Musk’s close ties with the Chinese government, which included concessions such as low-interest loans and changes in ownership rules to facilitate the setup of the plant in Shanghai in 2019.

Tesla’s China plant now accounts for more than half of its global deliveries, making it increasingly reliant on the low production costs in China’s competitive electric vehicle market. While China has been building its own strong EV industry, Tesla is facing challenges. Musk’s pro-China views on controversial issues such as Taiwan and his praise for the country’s leaders have also raised concerns among US lawmakers, particularly given his ownership of SpaceX, a satellite company with valuable Pentagon contracts.

Despite these reports, there has been no official comment from Tesla, SpaceX or Musk on these allegations raised by The New York Times. Business Insider has reached out to these companies for comment.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

Leave a Reply