Back in 2018, when Elon Musk took a juicy risk to float Tesla’s third gigafactory in China amidst heated trade wars between the US and the communist nation, all the focus of the world’s largest electric motor manufacturer was set on raking in tons of profit from the world’s largest market.
What could possibly go wrong? Elon must have thought, as Hong Kong gladly welcomed the monetary investment, employment prospects, and publicity Tesla would bring to its local fledgling electric vehicle market, and Tesla stretched out for a handshake, confident of its ability to replicate its streams of success in the US and Europe.
The tumult began for Tesla when trickles of consumer discomfort began seeping into Chinese social media space, with buyers reporting unresolved issues from their experiences with Tesla cars. Less than three years after and the reports have escalated to the level of state-sponsored media houses strategically poisoning the company’s reputation with bad publicity to the point of suggesting that the Chinese government kicks Tesla out as it did to Google.
Tesla’s plea for the government control of the canceled campaign has gone unresponded, lending credence to Former US Secretary of State, Mike Pompeo’s widely criticized red alert on China’s hideous international business practices.
BTC The Villain, BTC The Saviour
Last Q1, Tesla reported profits from its operations, but the chunk of its gain came from the sale of a part of its $1.5 billion worth of Bitcoin. Despite gains made from the apex crypto, Elon has remained a turn-coat critic of BTC, recently labeling the cryptocurrency as slow and citing a now-disproved energy consumption concern as the chief reason for Tesla’s discontinuation of its BTC payment option.
With China’s recent clampdown on all Bitcoin activities, it is clear to see where Elon’s sudden hatred for Bitcoin must have come from as he struggles to find favor with the communist government and prolong the lifespan of Tesla’s operations in the state.
There are already unconfirmed reports of China’s plans to leverage Tesla’s popularity to drive its local electric car market for a short while before edging the US company out of its shores to be replaced by local manufacturers.
As it appears, the plot is already underway and Elon may well need to sell off more Bitcoins to pad up future profits and prove Tesla’s loyalty and obedience to Chinese stifling crypto laws.
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