Protesters opposed Elon Musk's “government efficiency or threshold department” at the Labor Department in Washington, D.C. on February 5, 2025.
AFP via Getty Images
Billionaire Elon Musk and his young multiple minions tear up the alarm bell this week in sensitive government databases and payment systems to cut federal spending in a cutting and burning effort. This is a problem because he is not an elected official, many of his actions may prove to be totally illegal (not to mention unconstitutional) and he can use his own powers to benefit the company directly. But that's not all.
Tesla's (the biggest source of his wealth)'s profitability depends on one of the biggest rivals in the United States: China.
Tesla and Musk have a particularly comfortable relationship with the Chinese Communist Party leaders and have obtained licenses to own and operate their factories without local partners, which is for all other non-Chinese cars Manufacturer's requirements. This was Tesla's only growing market last year, with sales trends in the United States and Europe. Crucially, this was the opening of Shanghai gigafactory five years ago, which turned Tesla's wealth after a decade of red ink. The company has remained profitable in its first year of operation since 2020. With the blur of its sales outlook, China is even more important to Tesla and Musk's personal wealth than before.
He would “jump like a circus when Xi Jinping calls when he needs to”
This increases Musk’s need to please the Chinese authorities, and they may put pressure on Trump if his policies do not align with their priorities. Or as the brief Vivek Ramaswamy, Vivek Ramaswamy, put it on the podcast in 2023: Billionaires will “jump like circus monkeys, when Xi Jinping calls when needed.”
Musk is a frequent and aggressive critic of former President Joe Biden, who is involved in comments from Chinese leaders on his social media soap box X Totally passionate and blurred. His attraction to Chinese leadership dates back to a decade, starting with a visit in 2015, where he opened a factory in Tesla. Forbes Recent reports. During the approval process of a large-scale Shanghai factory, the factory received at least $1.4 billion in loans from state affiliated banks, Musk worked closely with Li Qiang, and Communist officials managed Shanghai at the time. Today, Lee is the second behind China in XI and has served as prime minister since 2023.
Tesla CEO Elon Musk met with Chinese Vice President Han Zheng in Washington, DC on January 19, 2025.
Xinhua News Agency via Getty Images
Last month, the day before Trump took office, Chinese Vice President Han Zheng held a meeting with Musk in Washington to encourage Tesla and other U.S. companies to “make new and greater contributions between countries to Contribute more to closer economic and trade relations.” State-owned Xinhua News Agency. Musk often uses the toilet on X and has a grumpy temper, and he replied that Tesla is ready to do it.
Other major companies such as Apple also have close ties to China. However, Tesla's level is different. In addition to the special agreement to fully own its factory, Toyota, General Motors and other automakers’ joint ventures require free passage, Tesla also benefits from cheap Chinese labor, parts and logistics costs from Shanghai Gigafactory one-money machine.
“They have more production capacity there than the rest of the world,” said Sam Fiorani, vice president of automatic recording solutions. “It just became the most important market, it sold to every other market.”
Unlike the United States, Chinese Tesla buyers will continue to receive government incentives, with an average of about $2,000. The polluting credit system, which uses California’s zero-emission vehicle program as a counterfeit, has also raised additional money for the company. (Trump's administration has withdrawn stronger fuel economy standards, which could eliminate most of Tesla's emissions points sales to other automakers.)
However, it gets the price of profit.
“China is not inclined to give up on things. The country's laws provide that the Communist Party can ask any company that does business in China in exchange for intelligence on participating in the country's market. New York Times It is believed that Musk's public opinion articles are a national security risk.
“This means that Mr. Musk's business dealings in China may require him to hand over sensitive confidential information to learn through his business interests or proximity,” he said.
Even if the CCP hasn't twisted Musk's arms yet, they have all the leverage they might need – which makes Musk a dangerous person to be in this choice in Trump's inner circle, let alone reshape the federal government at the time The government considers it appropriate.
Over the course of a week, Doge, who was mostly composed of his company lieutenants, and a group of young engineers brought his agenda and offered a massive acquisition to all federal workers (at least accepted so far). 40,000 people) and obtained sensitive people. Millions of Americans have tax and financial information and access to the Treasury Department's payment system. At present, Congress and federal courts must take action quickly enough to prevent huge damage to government plans.
The fact that Musk can cut or change federal agencies to the company's companies (such as SpaceX, NHTSA, OSHA and TESLA's NLRB) is very inappropriate and violates all government ethical standards. (Federal work, especially those in sensitive positions, prohibits “participation in matters that affect your financial interests as well as your spouse, minor children or general partner; you serve as an official, director, trustee, partner organization or The organization you are negotiating with;
Musk also avoided financial scrutiny to determine the conflict of interest in the standards of senior government roles. However, CNN reported this week that he still received the highest security permit. The White House finally clarified his role as a “special government employee” on February 3, a free stance that usually does not last for more than 130 days. Trump staff said they rely on Musk to self-identify any potential conflict.
“Major conflict of interest”
The White House did not immediately respond to a request for comment on Musk’s China relations, and Republicans in Congress have not yet publicly opposed his role on the road. But Democrats are opposing him.
“Mr. Musk's dual role – a for-profit company in a business while serving in public office – not only creates a great conflict of interest, which poses a serious risk to the most sacred institutions in the United States, but may also violate federal law.” Brandon Earhart, Tesla's general counsel.
The Senator is a ranking committee member of the Homeland Security and Government Affairs Committee, requesting information on the permanent subcommittee of the investigation, including detailed information about Tesla staff; how Musk explains his responsibilities to Tesla’s board of directors and its response; Sla has received federal contracts over the past 12 months; and whether the automaker has received government information due to Doge activity.
Given that there appears to be a “major conflict of interest” and “Tesla may have the potential to make moral requirements violate ethical requirements, gain an unfair competitive advantage, and the possibility of potential violations of federal law, you are obliged to retain the relationship with Tesla and Tesla. La Interactive about all records about Doge or any agent operating on behalf of the agency.” He wrote.
Rep. Mark Pocan, Democrat of Wisconsin, introduced legislation in the House of Representatives titled “Eliminate our country’s looting our country, pass the elude of immoral state Clettock Rule (Elon Musk) Act, The bill would prohibit special government employees from obtaining federal contracts.
Tesla CEO Elon Musk accompanied Shanghai Mayor Ying Yong at a groundbreaking ceremony held at Tesla's Qianqian Monument in January 2019.
AFP/Getty Images
So far, the approval rating for Musk's administration positions has been greatly reduced: The latest survey by Morning Consult found that 46% disapprove of his position, while 41% approved it – this has been said since Trump was sworn in. It is a 10-point drop. Host Stephen Colbert likens his behavior to “a chimpanzee with a chainsaw.”)
There is reason to believe that Tesla's growth in China over time – so Musk's need to keep the government good grace may be reduced. That's because it hasn't released a new model that has been successful in five years (Sebert Race is a U.S. sales, and hasn't been sold in China yet). The company is also struggling to compete with local electric car manufacturers like Byd.
“The only quantity sellers they can compete at prices are the Model 3 and Model Y, which was launched in China in 2020 and 2021. Since then, everyone has refreshed it.” Bill Russo, who runs Shanghai Consulting Automation explain. “In the same time frame, Byd has launched 129 different models and variants, including several new brands.”
If Russo has the power, then China's Tesla's weakness will be good news for shareholders who believe the company will only grow under Musk. However, a significant reduction in reliance on this market may alleviate his concerns Manchurian candidate.
