Republican US congressman Mike Gallagher is “concerned” about Tesla’s cozy relationship with China, he told Reuters on Monday, after CEO Elon Musk announced his company was building a new Megapack battery factory in Shanghai.
“Tesla seems entirely dependent a) on the largesse of the federal government via tax breaks and b) upon access to the Chinese market,” Gallagher said, describing “the sort of deals they’ve struck there” as “very concerning.”
China Is World Leader In EV Battery Tech
[COLOR=rgb(184, 49, 47)]By locating its new Megapack factory in China, Tesla hopes to take advantage of[SIZE=7] China’s dominant position in the battery supply chain [/SIZE]to lower the prices of its lithium-ion power units, with an eye toward expanding its battery and solar energy business to the same size as its electric car business.
The Wisconsin congressman, who chairs the House of Representatives’ Select Committee on the Chinese Communist Party, conceded that he hoped Tesla would be forthcoming with information about its dealings with Beijing. However, he warned, “if we reach roadblocks and we get to a point where lawyers are getting involved with answers, that’s when you start to think about subpoenas.”