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Tesla boosts China investment with plans for Shanghai battery factory

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Expansion comes as Washington calls on US groups to be less reliant on Chinese manufacturers

The US is expected soon to release for trial a new screening mechanism for investment in China. The requirement would be one strand in a broad-based set of new policies under President Joe Biden aimed at boosting American manufacturing and cutting US reliance on China for manufacturing and technology.

The new China investment comes at a tense moment for Musk’s relationship with customers in the world’s biggest consumer market as well as the ruling Chinese Communist Party under President Xi Jinping. Despite success in China – where Tesla makes about a quarter of its revenue – the rise of home-grown plug-in hybrid and EV challengers, including Warren Buffett-backed BYD, has seen Tesla lose market share.

Those concerns deepened after Musk last year started dispatching Starlink satellites to support Ukraine against invading Russian forces.

 

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