Elon Musk got special favors from China to set up Tesla plant: ‘He’s exposed…'

The report claimed that Elon Musk was offered concessions from the Chinese government to set up a Tesla plant in Shanghai.

Updated on: Mar 29, 2024, 24:53:18 IST

By HT News Desk

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China handed Elon Musk special privileges to set up a Tesla plant in the country, New York Times reported. This leaves him vulnerable to leverage from Beijing, the report added, citing former Tesla employees, diplomats, and policymakers who described Elon Musk's relationship with China's government.

Tesla and SpaceX's CEO Elon Musk looks on during an in-conversation event. (AP)

The report claimed that Elon Musk was offered concessions from the Chinese government to set up a Tesla plant in Shanghai. The construction of this plant began in 2019, it was earlier reported.

What perks did China offer to Elon Musk?

China offered Tesla perks which included low-interest loans, new emissions credit policy which the company profited from and even changed ownership rules so that Tesla could set up without a domestic partner, the report claimed. Tesla's China plant accounts for more than half of the company's global deliveries and the company is increasingly dependent on the low costs of car production in China, the report added.

China's focus on EV market

China is building a powerful EV industry of its own while keeping Tesla on the back foot, the report said, adding that Tesla's presence in China has helped to turbocharge its EV industry by increasing innovation in key sectors.

Why are US lawmakers concerned about Elon Musk's China link?

Read more: Stability AI founder's Microsoft CEO joke: ‘Satya Nadella is above, below and…’

US lawmakers are concerned about Elon Musk's dependence on China, particularly given his ownership of SpaceX, as per the report. The satellite company has valuable Pentagon contracts although Elon Musk emphasized earlier that his companies are separate entities.

Elon Musk has even taken pro-China stance on issues including Taiwan.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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