It’s refreshing to hear about Tesla’s 50-acre battery manufacturing facility in Shanghai. Elon Musk enjoys immense popularity in China, where he is warmly received by leaders and recognized for his business expertise. Experts suggest that Beijing welcomed Tesla’s car manufacturing not only for its prestige but also to accelerate the growth of its own electric vehicle industry and supply chain. That strategy proved successful—Tesla now faces intense competition from domestic automakers like BYD, which surpassed it in EV production in 2024. According to the China Passenger Car Association, Tesla ranked only 10th in Chinese car sales last year. But why wasn’t that manufacturing site built in the United States?
