According to a New York Times investigation, Elon Musk, the CEO of Tesla and a tech millionaire, allegedly obtained preferential treatment from Chinese officials when establishing a plant for his auto firm, putting him at the mercy of Beijing.
According to the investigation, which included interviews with workers, ambassadors, and legislators, China modified its regulations for Elon Musk’s business in order to allow Tesla to build a facility in Shanghai.
It was mentioned that Tesla was able to obtain low-interest loans, that the emission credit policy had changed, and that ownership had changed such that Tesla was now owned independently of a local partner.
According to a statement made by Tesla in January of this year, the Shanghai facility, the first gigafactory outside of the US, produced 947,000 vehicles in 2023, a 33% increase over 2022.
In its report, the business added that the Shanghai factory produced over 1.8 million of the EVs that were registered last year.
As the EV industry gets more competitive, China is a viable location for Tesla’s low-cost manufacture. Beijing benefited Tesla by expanding its own electric vehicle manufacturing sector.
Since the Pentagon has a contract with the 52-year-old’s SpaceX, lawmakers in Washington are leery of his complex connection with China.
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