How Elon Musk enraged a few American Political Analysts?
Why has China fallen out with Tesla?
Chinese government officials helped Tesla secure loans worth around $1.6 billion.
Tesla sales in China reached $6.66 billion in 2020, accounting for 21 percent of its $31.54 billion total.
Tesla can expect an immediate fallout and penalties if it doesn’t overcome its performance and safety issues. The media has widely reported that Tesla enjoys a privileged position in China.
CNBC reports suggested that Chinese government officials helped Tesla secure loans worth around $1.6 billion for manufacturing its factory shanghai. Besides, during the global pandemic in 2020, the Shanghai government assisted Tesla to stabilize their operations despite widespread lockdowns.
Founded in July 2003 as Tesla Motors, the company’s name is a tribute to inventor and electrical engineer Nikola Tesla.
The purpose of Tesla is to help accentuate the move to sustainable transport and energy, obtained through electric vehicles and solar power. Tesla began production of their first car model, the Roadster, in 2009 which was followed by the Model S sedan in 2012, the Model X SUV in 2015, the higher volume Model 3 sedan in 2017, and the Model Y crossover in 2020. The Model 3 is the world’s all-time best-selling plug-in electric car. In 2020, the company surpassed the 1 million mark of electric cars produced.
Elon Musk praised the Chinese government and its leadership in various interviews for its benevolent gesture. Musk happened to enrage few American political analysts when Elon commended Chinese people while labeling American characters as complacent and entitled.
“I’d like to strike an optimistic note, and I’m very confident that the future of China is going to be great and that China is headed towards being the biggest economy in the world with a lot of prosperity in the future,” Musk said.
The Gifted Tycoon tried to convince China that his company would not acquire any benefits from spying for foreign governments. “There’s a strong incentive for us to be very confidential with any information,” Musk said at the China Development Forum.
The American electric vehicle company cannot afford to lose the deal as they want to stay in the game with other competitors. Tesla is holding up on a thin ice with Chinese government and any sort of indiscretion would let to a termination of this liasion.