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Tesla Shanghai churned out 1 million vehicles in just 13 months in 2023. The future of Tesla’s production is in China, not America. No way Elon doesn’t know that. If he can get preferential treatment in China, his made-in-China EVs will be competitive.
Besides, Teslas are still the most popular pure EV model in their segments in China. It’s true that Chinese domestic EVs (especially hybrids) have slaughtered all foreign brands in the lower tier models, but Tesla is not competing on those segments.
But why on earth would China give Tesla preferential treatment when their own Chinese EVs were banned in the US market to benefit Tesla?
Biden was the one who imposed the tariffs on Chinese EVs. Trump cannot unilaterally remove the tariff because that’d make America look weak.
And it would be beneficial for both parties: America removes the tariff on EV while Tesla gets preferential treatment in China, while China gets to receive foreign investment from US capital and access to American market. China likes win-win strategies, and Trump is going to give them that.