The chair of a U.S. Congressional Committee expressed concern over Tesla’s alleged dependency on China.
Tesla Giga Shanghai has contributed significantly to the Texas-based automaker for a few years. Tesla recently announced another factory in China dedicated to producing Megapack units.
“I’m concerned about this,” said Mike Gallagher, a Republican chair of the House Representatives’ select committee on China’s Communist Party. “Tesla seems entirely dependent. A, on the largesse of the federal government via tax breaks, B, upon access to the Chinese market,” he said.
According to Reuters, Gallagher wants to know how Elon Musk balances the support for Tesla from the United States government and its operations in China.
“The sort of deals they’ve struck there seems very concerning. I’d just be curious to know how Elon Musk balances both of those,” he said.
Gallagher isn’t just concerned about Tesla. Last week, he met with other companies that had dealings in China, including Apple, Google, and Disney. The Congressional Committee, created earlier this year, seeks to “selectively decouple” the U.S. and Chinese companies in specific industries. Gallagher hopes to talk with Tesla and other companies with deals in China to reach the committee’s goal.
Regarding the electric vehicle (E.V.) industry, China appears focused on becoming a powerhouse. Electric vehicles have opened the auto industry to new players and provided new opportunities for a few old players to gain more market share.
Chinese automakers are quickly recognizing the space they could fill in the global electric vehicle market. In China, BYD is the king of NEV sales–albeit with help from plug-in hybrids. Tesla holds the most market share in China’s NEV market among foreign EV automakers.