Is Elon Musk's relation with China a threat to US?

Tech billionaire and CEO of Tesla Elon Musk was reported to have secured special favours from Chinese leaders while he was setting up a plant for his car company that could render him under Beijing’s influence, according to a report from the New York Times.

The report citing interviews from employees, diplomats, and policymakers noted that China changed its policies for Elon Musk’s company for the construction of Tesla’s Shanghai plant.

It noted that Tesla secured low-interest loans, changes in the policy of emission credit, and changes in ownership rendering Tesla to be owned without a local partner.

The Shanghai plant — the first gigafactory outside the US — sent 947,000 vehicles in 2023 into the market, Tesla said in January this year, — a surge of a 33% increase from 2022.

The company also said in its report that more than 1.8 million EVs entered last year came from the Shanghai plant.

China is a feasible site for low-cost production for Tesla as the EV market grows competitive. Beijing also favoured Tesla by boosting its own electric car-making industry.

Legislators in Washington are wary of the 52-year-old’s interwoven relationship with China as his SpaceX is in contract with the Pentagon.