No American business leader has more publicly supported President-elect Donald J. Trump than Elon Musk. Few, if any, also have such a complex relationship with China, a country that Mr. Trump has pledged to take a more confrontational approach with, potentially involving higher tariffs and other measures.
Mr. Musk’s business ventures have a lot at stake. His well-known electric vehicle maker, Tesla, manufactures half its cars in China. Tesla sells more vehicles in China than any other nation outside the United States. Simultaneously, local competition is growing more fierce. China’s regulators have yet to approve Tesla’s advanced assisted-driving and autonomous driving technologies, while permitting Chinese automakers to develop comparable systems.
Elon Musk has personally reached out to China’s premier, Li Qiang, seeking approval to introduce what Tesla calls Full Self-Driving, as the company’s market share in China has decreased. Some experts suggest Beijing might leverage Mr. Musk as an influential advocate, encouraging Mr. Trump to adopt a more conciliatory approach on trade.
“When Chinese leaders want to deliver an important message to President Trump, Elon Musk would clearly be the best messenger,” stated Michael Dunne, a China automotive consultant living in San Diego.
Competition from China is increasing for other companies owned by Mr. Musk, including those involved in solar energy and large batteries. Some of his business ventures could benefit from a separation of the Chinese and American economies. The introduction of steep tariffs, initially imposed by Mr. Trump during his first term and later increased by President Biden, have stopped many Chinese automakers from entering the American market.
