The head of a U.S. congressional committee on China raised concern about Tesla Inc.’s (TSLA.O) dependency on China a day after the firm unveiled Megapack battery manufacturing in Shanghai.
Tesla tweeted the facility on Sunday. Chinese official media reported it would initially manufacture 10,000 Megapack units a year, equal to 40-gigawatt hours of energy storage, to accompany a gigantic Shanghai electric vehicle production.
Mike Gallagher, the Republican chair of the House special committee on China’s Communist Party, wants to hear how Tesla CEO Elon Musk balances U.S. government aid with China operations.
The battery facility worries Gallagher. “Tesla seems entirely dependent, A, on the goodwill of the federal government via tax incentives, and B, upon access to the China market,” Gallagher said.
There are concerning agreements. He called SpaceX a “great success story.”
Tesla ignored Gallagher.
“Tesla is growing production quickly in Texas, California & Nevada,” Musk tweeted Sunday in response to criticism.
Shanghai produced over half the automaker’s global output in 2022. Tesla earned $18.15 billion from China last year, 20% of its sales.
Tesla’s Megapack factory launch coincides with escalating U.S.-China tensions and Beijing’s efforts to entice foreign companies after COVID-19 shut down its economy.
Comment Template