Tesla's Close Ties to China Raise Questions as Competition Heats Up
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Tesla pivoted to China for cheap parts and capable workers when facing failure, cementing an unusually close relationship between Elon Musk and Beijing.
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China offered Tesla concessions like regulatory changes, record fast factory construction, and generous loans to establish domestic electric vehicle production.
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The Shanghai factory now accounts for over half of Tesla's global deliveries and profits, making Musk reliant on continued Chinese market access.
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Musk's China links have raised scrutiny from US policymakers concerned about potential leverage and his repeating of Beijing's geopolitical talking points.
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Having helped catalyze China's electric vehicle industry, Tesla now faces increasingly tough competition from capable Chinese automakers expanding globally.