Showdown between Beijing and Elon Musk over the Tesla electric car

Tesla cars on display in Shanghai, May 8, 2020. REUTERS - SUN YILEI

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The world n ° 1 in electric cars is stepping up to keep the largest market on the planet completely open to it.

Tesla boss Elon Musk faces Beijing's ban on officials and the military from buying his vehicles.

The Chinese government invokes the risk of espionage for the benefit of the United States. 

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It is a short circuit that threatens the world star of electric cars.

The Tesla suffers a shrinkage in the Chinese market.

The military and all the personnel of large state-owned companies can no longer buy it.

These are the millions of potentially lost customers for the vehicle developed by Elon Musk.

Beijing explains the decision being taken out of fears that the images taken by the cameras of Tesla cars in their surroundings could be transmitted to the United States.

In short, espionage.

In order to reassure Beijing, Elon Musk swears that the data of his vehicles will remain confidential, adding that no company, American or Chinese would take the risk of collecting private data and sharing it with his government.

Is this a way for China to favor its own manufacturers of electric cars?

Its stance on Tesla comes amid trade tension with the United States over technology.

The American authorities have just put the Chinese group Huawei on the list of companies considered a threat to national security.

It is therefore a continuity between the Trump administration and the Biden administration vis-à-vis China. 

China is a crucial and promising market for Tesla.

It has built a factory in Shanghai and already sells a quarter of its total production there.

The group wants to reach 200,000 vehicles sold this year in the Middle Kingdom.

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  • China

  • United States

  • Automotive