Elon Musk raises concerns over escalating US-China tensions

Tesla CEO Elon Musk expressed concern about the tension between the US and China, particularly regarding Taiwan. 

Musk said that the official policy of China is to integrate Taiwan, and he believes that China’s intentions should be taken seriously. 

He also highlighted the interconnectedness of the Chinese and global economies, emphasizing the potential impact on companies like Tesla and Apple if the situation escalates.

During an interview following Tesla’s annual shareholder meeting, CEO Elon Musk expressed his concerns about the escalating tensions between the United States and China. 

With the US pledging to defend Taiwan if attacked and China maintaining its belief that Taiwan is part of its territory, Musk acknowledged that the situation should be worrisome for everyone. 

When asked about China’s potential move to control Taiwan, Musk highlighted China’s official policy of integration and emphasised the seriousness of the situation, stating that the Chinese and global economies are interconnected like conjoined twins, making separation difficult and impacting various companies, including Tesla and Apple.

Musk, who was born in South Africa and became a US citizen in 2002, stressed the significance of China’s policy towards Taiwan. When asked about the implications for Tesla and other companies if China were to take control of Taiwan, Musk underscored the deep interdependency between the Chinese and global economies. He cited examples such as iPhones, pointing out the far-reaching consequences of such a development.

In a bid to reduce reliance on China, Apple had previously announced its decision to start assembling the iPhone 14 in India. Similarly, Tesla manufactures vehicles in Shanghai while maintaining factories in California, Texas, and Germany. 

Musk acknowledged that there are certain limitations on Tesla’s expansion in China but clarified that it is not due to a lack of demand. He further highlighted Tesla’s dependence on Taiwan Semiconductor for processors, a reliance shared by Apple.