Tesla folds to the Chinese authorities. Elon Musk does not scratch
One of Tesla's themes in recent months has been linked to the relationship between the company and the Chinese authorities and market.
Over the past couple of months, we've seen how the honeymoon between the world's largest auto market and Tesla has slowly but surely escalated. The change in the relationship is notable because Tesla has relied heavily on China sales and manufacturing from its Shanghai factory to improve expert ratings for its actions.
It seems that now Elon Musk's company is learning how to behave, at least towards the Chinese government, and that it is starting to limit the damage in its relations with the authorities.
The company is "strengthening its engagement" with Chinese regulators, according to a Reuters report on Monday morning. A Bloomberg follow-up reported that “Tesla executives have participated in at least four policy discussions in China, on topics including car data storage, vehicle-to-infrastructure communication technologies, car recycling and carbon emissions ".
Interestingly, the hottest topic for tesla in China, landslide performance, for which it has been publicly contested, was not part of the discussions with regulators.
Tesla is also expanding its "government relations team" in China (you can't even imagine what its job is). Recall that recently, Tesla repaid $ 614 million in loans it owed to its Shanghai Gigafactory.
These loans were part of sums Tesla had obtained for the opening of the Chinese subsidiary and the associated Gigafactory battery manufacturing plant. This money then took mysterious roads to go to the US, and then back. After all, these were loans from China, so the return was mandatory. At the same time, with this money and with the financing of the mission by the Chinese authorities, many thought that the tesla had now become a sort of "Asset" of the Chinese government, that is, the Chinese Communist Party.
What will happen to Tesla in China now? Simple, there are two possibilities. the first is for Tesla to become dominated by the Chinese government, become a subsidiary of it, the second is to act independently, and be kicked out of China.
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The Tesla article in the fold of the Chinese authorities. Elon Musk does not scratch comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tesla-di-piega-alle-autorita-cinesi-elon-musk-non-graffia/ on Tue, 04 May 2021 06:00:07 +0000.