How a Trump victory would threaten Tesla’s success in China
Subscribe to enjoy similar stories. Tesla has had a special relationship with China allowing it to do things in the country that have been the envy of other U.S. automakers.
That connection will be tested if Donald Trump is elected to a second term in the White House and a bigger trade war breaks out. Chief Executive Elon Musk’s embrace of the Republican might put little daylight between him and a second Trump administration in Beijing’s eyes, according to China experts. It isn’t hard to see why Chinese officials might conclude the two men are united, especially as Musk is not just spending money to help get Trump re-elected but is campaigning for him across Pennsylvania.
In turn, Trump, who has taken to mentioning Musk routinely by name during campaign events, has said he would appoint him to an efficiency commission aimed at reducing the government. “The Chinese government, I think, are looking at that close relationship as a good thing and…Elon could be seen as an extension of the Trump administration and ultimately something that can help the Chinese government soften the U.S. stance on EVs and technology," Tu Le, founder of the consulting firm Sino Auto Insights, told me in an email.
The importance of Tesla’s China business was on display this past week, when the electric-car maker reported third-quarter results, showing revenue from the country rising 13% from a year earlier. China is Tesla’s biggest market outside the U.S. and is home to its most productive factory, capable of making around one million vehicles a year.
“China continues to outperform U.S. and Europe," Chief Financial Officer Vaibhav Taneja told analysts Thursday about the electric-vehicle industry. “And if there is something to be learned from
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