In late April, Tesla’s founder and CEO Elon Musk canceled his trip to India at the last minute and instead appeared in Beijing, reaching a comprehensive agreement with the Chinese Communist Party (CCP) to save Tesla. The immediate impact was evident: the stock price of this electric car manufacturer, which has long been underestimated on Wall Street, soared rapidly.
This unexpected move has raised concerns in Washington about whether the CCP will gain control over Musk’s another company, SpaceX, which is crucial for America’s space ambitions.
During his second visit to China in less than a year, Musk announced that a deal had been reached with Baidu, a Chinese company, on mapping and navigation software. The China Association of Automobile Manufacturers based in Beijing stated on April 28 that Tesla’s Model 3 and Model Y vehicles had met China’s data security requirements.
In China, car buyers often prioritize technological features more than Americans do, and Musk has been eager to promote Tesla’s “full self-driving” software in China, where currently his cars only have basic “autopilot” features. Most observers believe that he is on the fast track to obtain authorization from the CCP.
Tesla’s market share has taken a hit recently. While a year ago Tesla was ranked first in China’s new energy vehicle retail market, it has now slipped to the third position in the first quarter of this year. BYD and other emerging electric vehicle companies in China are giving Tesla a run for its money, according to Scott Foster, writing for Asia Times based in Hong Kong.
Musk knows that China is a critical market for electric vehicles. Tesla’s “Gigafactory” in Shanghai, operational since 2019, is the heart and lungs of Musk’s car production outside the U.S. and is Tesla’s second-largest market currently.
The agreements made by Musk have resulted in heavily depending on the CCP. The CCP is well aware of Musk’s influence, but there are tensions regarding SpaceX, particularly as SpaceX’s advancements could challenge China’s space ambitions.
The concern has escalated to questions about the risk of deeper involvement with China affecting SpaceX’s contracts with U.S. government agencies. There are worries about how CCP’s pressure on Tesla could affect SpaceX and its critical technological assets.
The recent developments underscore the urgency for a national dialogue in the U.S. regarding Musk’s ownership stakes in both Tesla and SpaceX.
During Musk’s meeting with Chinese Premier Li Keqiang on April 28, Li emphasized mutual benefit, but this could also be seen as a veiled warning. It has become clear that someone so obedient to the CCP should not hold a vital role in maintaining America’s leadership in space.
The opinions expressed in this article raise serious questions about the potential implications of Musk’s dealings with the CCP, not only for Tesla but also for SpaceX and America’s national security.
This translation and rewrite aims to convey the key details and discussions highlighted in the original article.